Reduce their fear with character witnesses.  

You can view/download the spreadsheet here:https://docs.google.com/spreadsheets/d/1eWquKpM8cd...Here are my Assumptions:Market; West Coast (say San Fran )Cap rate at purchase: 5% NOI: 200,000 Purchase price: $4 mill LTV: 65% Down: $1.4 mil Finance: 2.6 million Terms: 5% for 5 year term 25 year amort NOI Increase 3%/yearNOI end of year 5: 225,101.76Net cash flow years 1-5: 149,867.16Principal Reduction years 1-5: 296,915.00Debt Principal end of year 5: 2,303,085.00Cap rate at end of year 5: 8%'Renewal terms: 8% for 5 year term 25 year amort Exit strategy 1: sell in 5 years Exit Strategy 2: hold for 10 years with refi in 5 years Based on above assumptions here is what I see:Exit Strategy 1 End of Year 5 sell building for 2,813,772.03 Less O/S Debt of 2,303,085.00 Net Profit 510,687.03 Plus 5 Year Cash Flow of ` 149,867 *Principle Reduction (Included) 0 Total Net Proceeds 660,554.19 Less Down Payment 1,400,000.00 Net Loss:  (739,445.81) * Note-Principal reduction is already included in the reduced O/S debt amountExit Strategy 2 End of Year 10 sell building for 3,261,932.96 Less O/S Debt of 2,125,147.00 Net Profit 1,136,785.96 Plus 10 Year Cash Flow of 314,281.00 *Principle Reduction (Included) 0Total Net Proceeds 1,451,066.82 Less Down Payment 1,400,000.00 Net Gain 51,066.82 * Note-Principal reduction is already included in the reduced O/S debt amountGiven the above scenario, in my view, it does not seem to make any sense to buy now.

Hope you're all doing well today.I'm currently a full time house flipper/ real estate investor, but am interested in starting my own brokerage firm in part to reduce the costs of my flipping business, but also to have full access to the MLS, provide secondary income, etc.In Kentucky, in order to become a broker, you must work as a licensed real estate agent for 2x years. 

The broader point of reducing the loan to just the reno was to reduce the amount loaned, but to your point, most will presumably want to lend on the purchase price to secure a lien for after the refinance.

I'm currently a full time house flipper/ real estate investor, but am interested in starting my own brokerage firm in part to reduce the costs of my flipping business, but also to have full access to the MLS, provide secondary income, etc.In Kentucky, in order to become a broker, you must work as a licensed real estate agent for 2x years.

Sometimes you'll see distributions first classified as a return of capital and the preferred return second...this is done to reduce the preferred return by constantly lowering the investor's capital account. 

I have been reading a ton of material (including Bigger Pockets books!) on real estate investing to educate myself before purchasing my first property.I've been scanning the MLS and been in contact with my agent for t...

Thanks a lot for the answer, there's one thing above that confuses me.So let's say capital gain after selling is $110kpassive active loss from other investments $20klong-term stock loss is $30k. first scenario: is my taxable capital gain is $110k-$20k-$30k=$60k, so this 60k capital gain would be taxed by 15%.second scenario: (110k-20k)*0.15/federal tax rate=$13,500 ; then it would be reduced by LT stock loss of 30k then the actual tax impact is zero ?

Which you literally are, because those items are only around 10-25 cents a piece when you buy in bulk.

There are some simple things you can do to reduce potential damage.