Rather, he may be comparing the cost of trash outs versus holding time.

The average interest rates on the loans are 7.38 percent which is extremely high compared to the interest rates I have on other props that I have just refinanced.

.- I pay the $40K + interest (interest rate comparable to that of stock market or other typical $40K investment) within 3 years, at which point the deal will be done, and I'll own the home outright..- If I'm unable to repay the $40K + interest within the agreed upon time, the investor automatically becomes a lienholder on the property and is entitled to his original investment plus a % of equity returned if any (this % is part of my question, what we be reasonable, given that I'm making the monthly payments?)

I have an option to purchase property from a relative so I am getting a great price on the lot compared to others in the area (1 acre is going for 150k in some areas, I would be receiving 2.5 acres for 60k).

California, for example, is horrible compared to Texas, where the standard to hold a property owner liable for a contractor's negligence is exceptionally difficult.

You might compare cost differential between doing this new and just buying a building with a 3rd unit already added plus cost of rehabbing the already added unit.You are saying a unit value in your building is 55k.

They will look at your actual net income (usually without the depreciation) and compare this to the proposed debt service payment (the P&I part, taxes and insurance are already taken out at this point.)

Lastly, for investors with excellent credit [800+], how do portfolio lenders compare to Hard$Lenders, for purchase+rehab loans, ---e.g. a. pointsb. application or activation feesc.

I just don't see them as a reliable partner anymore.

FACTOR TIME, WHAT YOUR GETTING, THEN COMPARE APPLES TO APPLES.ASK WHERE THERE MATERIALS ARE SUPPLIED FROM.