The other thing I see is sponsors totally ignoring cap rates, which is traditionally a major factor in the selling price.

I think what it is that younger people tend to look more on Facebook and older people more the traditional route like Zillow or hotpads etc.

This leaves the investor with only $12k invested after closing costs.Builder and investor enter partnership, rent property for $1600, covering expenses and also putting money in their pockets each month.End result: Investor owns brand new $210k appreciating investment property that cash flows over $200/month for $12,250See below for examples on deals.Example 1 - A traditional investment property sale on a new constructionRetail Value: $210kSales price: $195kLoan Amount: $156kDown Payment: $39kClosing Costs: $2.5kTotal Cash Invested: $41.5kRental Rate: $1600/moOperating Expenses: $503/moMortgage Payment: $857/moCash Flow: $240/moCap Rate: 6.75%Cash on cash return: 6.94%Example 2 - Okay now this is how the numbers look for the investor in my Partnership ProgramRetail Value: $210kSales price: $195kLoan Amount: $156kDown Payment: $9,750 ($29,250 was paid by the builder after closing for a 15% stake in the home)Closing Costs: $2.5kTotal Cash Invested: $12,250Rental Rate: $1600/moOperating Expenses: $503/moMortgage Payment: $857/moCash Flow: $240/moInvestor’s 85% Share: $204/moCap Rate: 6.75%Cash on cash return: 20%Any readers - please let me know your thoughts on this idea.

The current owners have no desire to get the proper Certificate of Occupancy for the half bath and we're using a traditional lender (big bank) so we think this will be an issue to get a mortgage.1. 

Traditional 30 year mortgage began in 2001.

private lenders refer to anyone who is willing to give you cash outside of traditional lenders. for instance: friends, family, or friends through networking. it's common that you won't know any at your age, don't be discouraged.

These same companies have traditionally increased the rent by 20-25% upon lease renewal Year 2.

Deals of this size often catch the attention of private lenders who are more flexible than traditional banks.Traditional or agency lenders often have stricter guidelines and may be more focused on larger commercial properties.

Hey BP communityI'm looking for a DSCR loan, I'm negotiating a great deal in the prime location, which I believe is under market value, the lender needs to be able to appraise the deal in house as traditional appraisals are taking too long and not gonna work in this caseWill apreciate any help

In the event of something urgent, you could have a handyman or relative swing by.As for holding off on the purchase, as the market is cooling, and we're moving into the slow season, things are less competitive for buyers than they've been in a while.All that said, if you were really leaning towards a traditional rental, many investors have been buying in Pueblo.