As long as you can cover the monthly mortgage payment.Interest rates are still too high and if you to refinance, then avoid the cash-out refi.Avoid the cash-out refi, but pay off some of the principal and refi was is left.What does everyone think?

I’ve heard that funds are wired into escrow, then the promissory note and deed of trust are signed and recorded, and at the end when the property sells, escrow pays back the lender’s principal plus interest before I see any profit.

What's your policy on agent-owned deals, where I represent myself as the principal?"

.: Massive loss of accrued interest and principal????

Equity payment: $156,000 due May 1, 2025 (I'm building my personal home, so seller is willing to defer till next year)Loan amount being financed: $469,000Interest rate: 4.5% (seller has 3% mortgage)Amortization: 30 years fixedBalloon term: 10 yearsMonthly payment: Principal and Interest due on the 1st of each month, starting the month following closingBuyer will assume taxes and insurance paymentMonthly payment will be made through an intermediary loan servicer10% penalty for 30 day late mortgage, interest, tax, or insurance paymentOption for accelerated loan default if 60 days of no insufficent paymentsDue on sale clause acknowledgementRight to refinance/prepayment clause (without penalty)Sellers obligation to cooperate (seller pays off loan at closing)Buyer is responsible for all property maintenance, repairs, improvements, and to keep the property in good conditionPersonal guaranteeTitle insurance with LLC namedHome insurance with LLC namedContigent upon getting a short term rent licenseAny comments on the deal itself or the terms would be much appreciated as this is my first time!

Interest always paid on time, and principal was returned with bonus right on schedule.

The concept is that a homeowner receives an upfront cash investment today, and in exchange, the investor gets their principal back plus a % of the property’s future appreciation at sale/refi.A few things I’m curious about:– How did you structure the agreement (lien, contract, equity share)?

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

That is because I make an additional payment on principal every month on top of the normal mortgage.

In an unsecured loan there is no property to liquidate; the lender will just obtain a judgement for the principal, back interest, legal fees, late fees, and costs and the borrower will owe that amount.