Having said that, we also have many clients we use our systems and processes for crypto funds, buying existing businesses, funding startups, hedge funds, venture capital, and even non-profits.  

(Is there any “profit” left?) 

Renting  rooms is almost always more profitable than renting entire suites or houses.

If I add up all the lender fees and my holding costs—like points, origination fees, and interest —I can figure out how much profit I’ll make and what my maximum offer should be.

If you are waiting on a repairman for those as well general repairs its going to hurt your profit and your appearance. 

The borrower must have a good deal from which they will make a fair profit.

Here are some general guidelines: Lien Position1st Position LienEquityMinimum Down Payment of 20-25% (a 30% equity to sale price is preferred)Down Payment made in certified funds and not borrowedMaximum Funding of 70% ITV (Investment to Value)SeasoningMinimum of two monthly payments already made12 months or more preferredPayer CreditCredit Score of 650 or higherNo major derogatory trade lines (No 90-180+ days delinquent, foreclosure, repossession, bankruptcy, etc.)No decline in credit since purchase of businessTermsPrefer 60 months or lessMaximum of 72 monthsNo Balloon Payment preferredCash FlowBusiness has positive cash flow1.25 debt service coverage ratio preferred.DocumentationPersonal guarantee from a creditworthy individualStandard documents including Note, Security Agreement, and UCC-1 filing.Tax Returns on the business that substantiate profit and loss statements.OtherPayment history current and verifiablePayer Interview indicating buyer is satisfied with business and comfortable making paymentsMotivation for selling the note is not a result of a deteriorating businessConsideration of high risk businesses or geographic areasIn these situations, sometimes a partial is a better option. 

Let’s say you have 12 lots and if everything went perfect in the exchange you would recognize your $30,000 profit per lot across the board.  

For example, several of our clients last year did not have a primary intention of profitability. 

Credit Rating/Bank Statements/Tax Returns: Specify your requirements, if important to you.Purchase Criterion: How do you define a good deal, which will be profitable for your borrower and safe for you?