Here are some considerations/very simple guidelines I used in the business.The yield spread between the cost of funds to the yield earned should be at least 25%, for example, if you are paying 8% on your money, you need at least 10%, more is much better.

I for one would never have given this any consideration in the past.

We have been back and forth on this one, and I am really not comfortable making a decision on this without consult the community here at BP.

The subject property is a SFH built in year 1900 in a historical area of t...

Another consideration is how the market behaved when interest rates were in the double digits during the 1980s.

If the reason for the non-closing also affects potential future buyers, the lender could be stuck foreclosing for more than the property is worth.Another factor is that coordinating a transactional deal takes considerable time and effort.

Are you stating that lenders at your REIA don't want to go more than 65% of puchase and rehab without consideration of ARV?

I had to put a $500 consideration amount to get this deal under contact.

4) if you have an option consideration of $3000 and the tenant buyer only has $1500 and you want to create a note for the remaining, what if the tenant buyer stops paying the note?

TERMINATION OPTION: For nominal consideration, the receipt of which is hereby acknowledged by Seller, and Buyer's agreement to pay Seller $ (Option Fee) within 2 days after the effective date of this contract, Seller grants Buyer the unrestricted right to terminate this contract by giving notice of termination to Seller within days after theeffective date of this contract (Option Period).

The head of the county housing authority called me and asked me to lower the proposed increase.I said that the rent is still considerably less than your maximum section 8 allowance and the fact that the former owner didn't charge enough rent was irrelevent.