(By contrast, if you buy clothes with VISA, the credit card company can’t repossess your sweater when you fail to pay your credit card bill.

I might offer to pay for the paint, but that's about it.I have also used this as an incentive when marketing a difficult property- offering a "decorating" allowance to approved applicants for a "custom home".

I WONT lift a hammer until you either give me 1/2 upfront or what I have been doing lately is have the investor deposit ALL the funds into a bank account with both my name and the investors name on the account----He cant pull it with out my signature and visa-versa And honestly as far as letting the investor buy the materials -- HA -- All the average investor sees is the "pretty" side of things not the working end of things, and becides sometimes you have no idea "whats behind that wall" so 9 out of 10 times the investor dosent buy the right items, enough items or whats really needed to put the project together.I'll be more than happy to go to the Home Depot and get everything ordered, shopped, picked up and I may even deliver it ( usually have Home Depot deliver it...more money out of your pocket !)

But, when you borrow $70k for a down payment, then on your application lie about that debt, and represent the money as from you own funds....that is mortgage fraud.

While cap rates should never be more than a quick gut check, they are less applicable to residential property because the credit worthiness of tenants can vary wildly.

The document is a pre-application document used to illustrate estimated loan costs.

That way if everything goes to hell, I know I won't be moving back in with the parents.Maybe it's just my area (Midwest) but I find it hilarious that the prospect of accumulating half a million dollars of real estate in cash is actually easier than going through the ridiculous process of crafting resumes and cover letters, submitting applications online which aren't even read by humans and are usually immediately denied, going through weeks of interviews, and maybe getting another miserable job.

Much of what you unearth here on BP is universally applicable, but it does tend to be U.S.A. specific, so just keep in mind what you read, particularly with respect to taxation, regulation and finance, we be a little different here at home.

If this wasn't a tough area to find good tenants in, I would have immediately tossed the application but decided to follow up.

Even for the little stuff.You will also be able to see if what they are telling you on your application is truthful or not.