I'm a newly licensed agent in Tennessee, working solely in new construction.My builder/principal broker is concerned with being liable/responsible for the 2 rental properties that I own, live in, and manage myself.

Do you think its a good investment decision.We are planning to put 20% (31K plus closing fees) 37KMortgage will be 124KThe bank is willing to lend us money to renovate - 40K, i have an option to pay it off after all will be done and lower my payment.The monthly prjected payment (including tax,principal and interest) is $1495.00What are your thoughts.  

Part of the package is a page that outlines who the principal operators are, and my page has lots of diverse real estate experience and a pretty good track record.

I own my company as the principal broker.

I'll be closing a $345k 12 unit tomorrow and that will put me at just under $10k a month in total principal and interest payments on my 42 units.

I can also help, as a Registered Principal for Direct Placements, if you wish.Best- Leslie Pappas

Thank you.I am a principal consultant at Safeguard Advisors, a provider of Self Directed IRA & 401(k) plans that allow a full mix of investments from traditional financial products to non-traditional classes such as real estate.  

You would be paying down principal as well. 

Meaning they do their own deals and if they lost their licensing they are still okay with cash flow from properties owned.Brokerages that have built up considerable business do not want the liability of newly licensed agents especially ones doing riskier investment deals that involve strategies that open a brokerage up to E and O claims.As a brokerage and principal broker you still answer to clients and your state real estate commission.New investor, newly licensed = recipe for disaster for a brokerage E and O claim.I had agents years ago and got rid of all of them.

(no connection; I used to work for ML 12 years ago)It's interest only for 10 years (at an adjustable rate, LIBOR-1-mo + 1.625%), then is a 15-year amortization of the principal (at the same adjustable rate).Upside: They don't have to abide by the conforming mortgage limits as it's underwritten in-house.Downside: It's adjustable.