Debts on other real estate

Mortgage loans on investment (non-owner-occupied) properties are treated differently from other installment loans. The payments on such mortgage loans are not directly held against the applicant. Instead, these investment property loan payments are held primarily against the property.

Ideally, the rental income from investment properties should offset the monthly payment requirements for those properties. In fact, most investment properties should provide the owner with an operating profit, and 75% of this net profit is actually credited to the applicant as additional income.

However, if the property is operating with a net loss, that shortfall is counted against the applicant as long-term debt.

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Real Estate Planning And Prosperity

Real Estate Planning And Prosperity

Entrepreneurs go against the flow. You've a business idea. Lots of individuals have business themes. The difference is that you, the entrepreneur, take action. Realty investors are the same.

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