It's total B.S.

Loan customers should continue to make their payments as usual.Meridian Bank had total assets of $ 39.18 million in total assets and $ 36.88 million in total deposits as of September 25, 2008.

Chris thanks for the info, chris i also found out that my thoughts were correct.there is no set value, the value of the property is based on what makes sense for you to achieve your investment goals (that's it).some will say to not rely on the cap rate for your purchase decision (which i agree), but to use it to compare to other similar properties that have sold in the area, which is actually not reliable because 1. there will be less comparables, 2. how properties were purchased vary from deal to deal, 3. the inner workings of most transactions are confidential.so the best way to analyze a deal (while using cap rates) is to add your financing terms into the picture (principal + interest and etc) and calculate what the deal is really worth to you.see the normal NOI/Asking price = cap rate is based on if someone were to pay all cash, this is the return they could expect first year, but paying all cash for a property doesn't happen all that often (bank funding will be use for a large portion of that cost).so i found the best way to use this formula and analyze my deals is by look at all factors but also including my financing terms with my desired return objectives into the picture to get a proper view and value to me.

Any close to total investment at or above 25K must produce rents at $600 or above.

Since each property is non-homogenous, you do not want to rely on rules of thumb when possible.

i.e. just to start with any total balance and quickly figure out what it would cost per month and/or per year with interest and pricipal.

I'm wrapping two underlying loans totaling 175K....my equity on top is 70K...the interest is 6.5%....I was initially going to carry 3 yrs now thought of 30 yrs for the income....but after coming on this forum this week thought I should rethink this.

He promised all the houses were in ready to to sold condition and TOTALLY rehab!

I've never found a do-it-yourself method as accurate as getting a realtor to pull comps.I've only gotten an appraisal (if I'm buying it myself and not wholesaling) if the house was rural, in some city I'm not familiar with, or is somehow harder to comp than usual, and in this case it is totally worth it.

A JV w the owner (Equity Split) might be a good idea if the deal is sweet.Can you be complete on the total situation?