The Management Consulting Group

If it is a multiple advance loan, can the principal be re-borrowed once repaid prior to maturity of the loan; making it, in effect, a revolving line of credit?(j) Are there reserve requirements?(i) Interest reserves?(ii) Repair reserves?(iii) Real estate tax reserves?(iv) Insurance reserves?(v) Environmental remediation reserves?(vi) Other reserves?(k) Are there requirements for Borrower to open business operating accounts with the Lender? If so, is the Borrower obligated to maintain minimum compensating balances?(l) Is the Borrower required to pledge business accounts as additional collateral?(m) Are there early repayment fees or yield maintenance requirements (each sometimes referred to as “pre-payment penalties”)?(n) Are there repayment blackout periods during which Borrower is not permitted to repay the loan?(o) Is there a Loan Commitment fee or “good faith deposit” due upon Borrowers acceptance of the Loan Commitment?(p) Is there a loan funding fee or loan brokerage fee or other loan fee due Lender or a loan broker at closing?(q) What are the Borrowers expense reimbursement obligations to Lender? When are they due? What is the Borrowers obligation to pay Lenders expenses if the loan does not close?B.

The investor must take a close look at both the quantitative and qualitative factors of each class of investment. Real Estate Investing FAQ #3 - Can I invest my IRA in real estate?There has been a lot of media attention recently on this topic. Use their knowledgeMost people know that some places have higher rental yields than other similar properties in the same class of real estate. If you are new to an area, you would want to tap on the vast knowledge of the real estate agents local knowledge. Ask him what areas command a better rental and why. Then ask him to show you those properties.

Source: Simarc