All Forum Posts by: Jack Lee

So if I just ask to see their Schedule E, most sellers will refuse?

In addition, what if the owner does not use an accountant?

Thanks guys. Would asking for the sellers' past 3 taxes forms be standard procedure?

For buying a simple SFR or Multifamily with equity and debt financing.

Can someone explain a little bit about the financial aspect of Due Diligence?

Thanks for replies! I understand now.

The principal reduction should just get tacked onto the ROI calculations.

It's my understanding that the FHA/Freddie/Fannie offers very good terms and rates even for single family rentals.

I thought about doing deals mostly financed by seller financing. My concern is that the types of properties that offer seller financing are of questionable quality. The sellers who engage in seller financing are either sophisticated sellers who try to screw the investor or home owners who do not understand how seller financing works and probably want straight up cash. 10-20% seller financing is probably doable with most sellers but I am having doubts whether doing seller financing for 80%+ of value is a good idea.

I was wondering if you guys include principal deduction as part of the cash on cash return calculations. I mean the equity is yours and will be able to cash out upon sale.

Hold on here guys, is a 10% cap rate bad??

It is my understanding that a 10% cap rate, proper use of debt (let's call it at 75% at 4.5% interest), and improved operations, a very satisfactory IRR can be achieved.

Can you guys please explain?

David thank you.

The list is fantastic. Just WOW.

Interesting. I have not considered mobile homes yet because I did not know a rental market existed for them. I assumed people could get a mortgage or a car loan of sorts for the mobile homes.

Are we talking about mobile homes or mobile home parks? I have considered the latter.