When you have positive cashflow, your cost is what comes out of your pocket...which is the down payment...and, like any7 business,  you must recover all of your cost before you start making any profit.So, let's say you have two options to buy a $100k property:  1)  100% down and no debt, or 2) 20% down and 80% debt. 

Hey BP,So a friend of mine called today asking for some advice that was well above my pay grade.  He works full time as a college professor, owns his own auto repair business, and also owns rental properties.  He ran ...

And by prime time I mean the main criteria is  Out of State owners  NO DEBT  or owned it many years. 

How do I check that you didn't do one of a thousand other things to obligate the LLC to some debt or credit?

On the few that have gone bad I have been able to work with the debtors instead of foreclosing.  

 @Adrian Tilley |  @Jon PoolWhile there often are some really strange case law out there and without taking sides, I just can't see how say a bank like JPM for instance (or any bank for that matter), can tell a customer that a default on an unsecured personal debt or credit card, would/could in and of itself trigger a default on a mortgage held with the same lender.

A company or investor may use equity, debt or both to finance any asset however he sees fit and based on their specific situation.

So, the question is: how would you get $100k/month in revenue from RE investing  (either the debt or equity side)  and how long do you think it would take?

It won't be fun or cheap but it is not unlimited and it can result in fraud claims against the debtor if the are not actually trying.

At some point if individual passive investors are being too demanding to place money then the syndicator might look at using more debt or using institutional money where they do not have to worry about keep finding more investors.No legal advice given.