This could be touchy from a marketing or sales side as really, you aren't selling the property requiring an ability to perform in a major financial transaction, you may be compensated in full upon the assignment so I can see a buyer saying it's none of your business.

I don't do PM stuff but just transact.

That's what CREATED Transactional Funding...

When you go to trade in a car at a dealership, they don't tell you what your car will sell for after they get it, that number has no bearing on the transaction at hand.

They are not even cousins.The IRS isn't in charge of assessing financed transactions except as to tax matters, your CPA probably isn't versed in originating financing agreements, that's a bit out of the domain for a CPA and the Federal Tax Court isn't the proper jurisdiction for RE transactions except as they pertain to taxation.They were also speaking to what not to exceed, not what the customary or average credit was being allowed under options, 10% of "firm" equity places a buyer/borrower over the hump for the financing required, most contracts shoot for 10% equity to be acquired.Dodd Frank incorporates the SAFE Act by specific reference.

He was suggesting that if he shows lenders the purchase agreement from us stating we will be paying the note they may be more likely to lend to him.I know most of you are probably not mortgage underwriters but I thought you may have had or heard of similar transactions.

(If I remember right) so in essence ; your only out of pocket 10% of a large portion of your loan fees as well.I am not saying its not a good deal I am just saying "caveat emptor," and do you due dillgence since each investor will have their required yields they need to make their go decision.On the above scenario the primary residence buyer was pushed into home path and would have paid 25,000 more but I am sure that would not happen to an investor (probably) who is more educated about the market comparables.Costs such as monthly MI (if buyer elects to not single pay their MI) could drastically lower your cash on cash return annually however if the deal still makes sense and you approve it through your method of evaluation whether it be cap rate, GRM, cash on cash, break even ratio, debt service ratio, or etc it can still be a good decision to move forward on the program.The maximum seller concessions for a non owner transaction are 2% of the sales price.

HI Nikolay, I have an article on what self employed individuals can do to make sure they are prepared to obtain financing in the coming year but I suppose it may be too late if you've already filed 2013 returns.There are still ways to structure your transaction to get you approved.

HI Todd,It depends on your cash on cash return or other metric by which you analyze property and your criteria.If you're making 300 per month estimated thats 3600 a year divided by estimated available equity of 20,000 (155k - 135k) which would be a 18% cash on cash return.Realistically its not 20k because of transaction costs so another way you could look at is to deduct the "what if I sold it," transaction costs out of your available 20k equity.

The key is structuring the deal or "transaction engineering" and marketing yourself.It all starts now and you want to just get out there and just start closing transactions to build a track record.