I’ve been analyzing different notes lately and noticed pricing varies widely depending on LTV, borrower history, and property type.
Curious how other investors here set their pricing models.
What factors carry the m...

From a tax perspective, the IRS typically allows pre-rental work (like the hours you spent getting the property ready) to count toward material participation if it’s directly related to getting the property ready for rent.

https://www.irs.gov/pub/irs-pdf/p5653.pdfHere is all you need to know. 

Consult with your accountant to determine how much you would benefit from a cost segregation study. 

So we work backwards from there to determine the price you could pay (which is also largely dependent on the loan type and terms). 

Not too hard to determine if you’re a real estate investor or a flipper.

That $100K is what determines your depreciation going forward.

It does offset income used to determine Federal Financial Aid.

Our SDIRA is actually the partner, so we need to make sure to not violate any IRS laws.

I see a lot of investors unsure about how note pricing really works.
Here are the biggest variables I look at:
• Payment history / seasoning
• LTV and remaining equity
• Property condition
• Borrower performance
...