Let me explain.1.

Do you as an agent introduce creative finance options to sellers, or wait until asked? How do you frame it?

. :-) and @Michael Plaks: knows his stuff, for the "normal" real estate investorLet me explain.

If they did, they wouldn't be here asking questions : )  As a result, this means that CPAs, Lawyers, and Financial professionals should explain things in simple terms that are easy for people to understand (I'm not sure quoting pubs and regs directly screams simplicity, but including it as a reference is helpful for everyone). 

Quote from @William Thompson: One thing I see every tax season is investors depreciating their rental property incorrectly — not because they’re careless, but because no one ever explained what actually gets capitalized.Here’s the simple rule of thumb:Your starting point should always be your HUD-1 / Closing Disclosure.Typically capitalized:Purchase price (excluding land)Facilitative acquisition costs tied to the purchaseTypically not capitalized:Loan costsOperating expensesEscrow items (taxes, insurance, prepaid interest)When everything gets lumped together, depreciation gets distorted — and that can lead to problems later, especially if you refinance, sell, or do cost segregation.Getting the capitalization right from day one makes everything else cleaner:depreciation, tax planning, and future exits.If you want a second set of eyes, DM me “HUD-1” and I’ll help make sure your property is properly capitalized.Curious — did you ever review how your rental was originally capitalized, or did you assume it was done correctly? 

I would contact them ahead of time and explain the situation so that they aren't scared by the change.

I put together a one-page visual to help explain an approach some investors use:treating a HELOC (simple interest, daily balance) as a central operating account rather than parking cash in checking/savings.Conceptually:Rent flows into the adjoined checking account of a HELOCExpenses are paid from the same lineDaily balance math reduces interest automaticallySome pair this with targeted principal reduction on long-term 30 yr mortgagesFrom a lender’s seat, I’m not advocating this as an end all be all strategy — just trying to understand how investors are thinking about it operationally.For those who’ve used something similar:Where does this add real value?

Would you mind explaining it more?

Here is the quickest way I can explain it.

Can you explain to me what your reserve requirements are?