Learn how to buy properties off-market by approaching principals who have not taken any substantial steps to sell.

They've been profiting by collecting principal+interest for the life of the loan, and any fees assoc. with foreclosure will likely be recouped during auction.The way in which we may help the seller depends on the situation.

I pay 15% more on my personal home, all principal reduction.  

**UPDATED: I see what you were saying now, that the market rents are above some 1% rule but are in-deed $5k/mth...I hope :)**2) Insurance seems low if your property taxes are $5,400/yr - you didn't mention the state this property is located in, so I guess we have to use your number but I would do the "Discount Double Check" on that number3) P/I I assume you are speaking of Debt Service Principal and Interest?

I do my own investments and work with commercial clients one on one as a principal broker.As I get older I enjoy simplicity in my life.

If he didn't pay it off you can often work backwards from the info given in the registered mortgage to figure out approximately how much he still owes on the property, assuming a reasonable interest rate for that year and also assuming that he didn't make any extra payments of principal in the intervening years.You might also want to access the tax collector's website in that town to see if he's behind in his property tax payments.  

If you want to be cashed out for the full principal amount , perhaps the better route to take here is to make a loan with a balloon payment at the point where you need them to refinance and cash you out. 

Offer to give the Borrower a letter which details the Original Balance, Principal Paydown and the 105 on time payments.  

If things start looking different, such as 'this is really for my friend' or 'I don't quite have all the money now' or other non-sense, you are not dealing with a principal.

Another down side is that your leverage floats at the same interest rate, if rates increase, all of your properties are effected.The up side is some financing costs can be reduced, settlement costs, but each property still must be appraised, title search and insurance, 20/25% down as to the total loan to value of collateral (TLTV), so in the end, they aren't significantly cheaper, points may be less, that depends too on other underwriting factors.Loan servicing matters are easier, an excuse for a better rate if you can negotiate that, but on your side, your accountant then allocates interest and principal reduction from total loan figures.