But the downsides are obscure.If you have other passive income you might want to keep your rental losses passive to offset this income.

If you buy a property, with title insurance, that insurance will not cover you for a supposed loss because you didn't know what property you were buying.

All businesses have losses and landlording is no different.2.

[Note: There is a caveat here: if the corporation employs 5 or more full-time positions, then the income would be classified as "active" and would be taxed accordingly].When rental property is held by an individual, the net passive income (or loss) is added to that individuals other income and taxed at the corresponding marginal tax rate.

There is very little you can't get actual numbers on when calculating profit (or loss) on a rental property.

There is a provision in the contract, that if we decide to SELL the property after the plans are approved, but before we start construction, that I will be compensated 5% PER ANNUM on the money that I invested, AND we will split the remaining PROFIT / LOSS - 50/50. 10.

IOWs, when one borrower gets too many loans a loss of that one borrower can cause significant risk to a lender.Regulators will frown on releasing a party for the sake of the rinse and repeat tactic with additional loans made, but there can be some leeway based on the aspects mentioned as they near concentration levels.This is why investors really need to establish good relationships with several lenders as at some point, using only one lender, they will have to say no at some point. :)

Chasing the lowest price is all fun and games until you have a major loss or lawsuit.

Hi everyone,thanks to James Vermillion who suggested I introduce myself, Im here giving everyone a warm greeting even though I am still mourning the loss of Oklahoma Thunder in the championship.

You may wish to incorporate a hold hamless agreement withing the note whereby the lender, for and inconsideration of the interest rate stated, the lender agrees to hold hamless and indemnify the maker(s) from and against any loss, damge, expense or finding arising from or out of this debt created notwithstanding the terms and agreements made in that certain deed of trust for the assignment of collateral granted,made of even date, or those promises made under the debt created for the payment of any and all amounts due.Now, everyone knows that this is not legal advice and is simply the generalized language I have used before in similar instances as an example, I'n not an attorney, so go see yours.