Until your personal balance sheet is in order don't go borrowing more for real estate.

But, if you like living on the edge, load up on debt where you limit your ability to borrow and see how it is making a living off buying properties with short term seller fiancing arrangements....good luck!

It will make investing more accessible to those with no money and no experience, as those with money and/or experience already have access.And when people with no money or experience start borrowing money to invest, the lenders will lose money and the model will quickly fall apart.Just my $.02...

Because many borrowers are unable to qualify for bank loans against investment properties, a private money loan is a good alternative in the case of a buyout.

For example, in Texas they are very much credit-based, but here in Georgia they wouldn't have any borrowers if they weighed heavily on just credit.

Any borrower can have recourse against anyone originating a mortgage, MLO have specific obligations for due diligence.

Tell the lender to give you a loan committment showing your ability to borrow the funds under the terms offered, if they can't or won't get another lender.

The seller has a ballon note in 5 years and will have a remaining balance of $17K and my amortization on my bank loan will be at $66K giving me allmost exactly $17K in available equity to borrow on and stay at or below 80% equity.

The risks really are with banks getting into internal problems, not closing so much (but they do) but changing loan requirements, having different capital requirements, having concentrations in loans or too much with one borrower.

3.Would I be better off incorporating and putting homes in the business name or will that make it harder to borrow against it?