Let's say you are paying 6% on $400,000 while you loan it out at at 12%, which is a net of 6% on $400,000 or $24,000 annually, a 24% CCR.Now let's look at the magical origination points:5 points (%) on 12 month notes for $100,000 cash is an additional $5,000 annually which totals to a 17% CCR on your $100K.5 points on 12 month notes for a $400,000 line of credit is an additional $20,000 annually which totals to a 44% CCR on your $100K.44% on your money.

i'm sorry but this is like the 3rd or fourth time that someone has scrutinized david's stuff and every time, someone magically appears with a post count of 1 to stick up for him. just an observation.

A post card is no magic wand that gets you a deal.It is all about the person receiving it.Do you really think, that because a post card is pink and not yellow, someone is going to call you?

The real magic is the zero down versus the 20% down.

It's magical.

It's magical there! 

I have formulated my owed ROI calculation to analyze risk. essential purchase price + renovation cost vs market comps for move in ready homes and have come up with a percentage variable between 50-75% So finally I'm here, just submitting my signed rider today to complete attorney review so I'm all in at this point. but what I'm wondering is there a magic number of formula to look at or consider?

It is especially useful to those living off rental income who are able to use depreciation to show an overall loss on their rental properties.Property classes A,B,C,D are highly variable among investors and their aspirations, but I tend to use Brandon Turner's blog entry as my base: Class A, B, C & D Real Estate: How to Know Where YOU Should Invest The key distinction that not enough people make in the entire Rust Belt area is thinking about the age of the properties -- where I operate, older properties predominate, and newer properties are rarely built to anything close same standards as the best of the older properties, and that leads to a lot of people confusing A and B and C (because they know pretty much bupkis about residential construction).The other problem is that there is a lot of aspirational wishing and hoping about D'class areas magically turning into C'class areas.Working on your real-world example...

There is nothing magical about real estate as an asset class, it will go up and down like anything else.

When I read it I learned a lot of areas I could improve on and I have done rentals for 20 years.The situation will not get better by magic, it will take hard work and discipline.