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By increasing the money supply and reducing the interest rates, what this does is that it increases the demand for housing.

One of the principles of multifamily real estate financial engineering is the standardization of net incomes. This is an essential exercise, otherwise one cannot make a good acquisition decision. However, this standardization often ignores the building’s deterioration.

Some obstacles may challenge the acceptance or rejection of a vendor take-back. For examples, the seller needs all the money from the transaction, the necessity to find a structure to persuade all parties involved in accepting the vendor take-back or the account manager and the mortgage broker don’t have the skills to set up this kind of arrangement. Also, one should know when a vendor take-back is too risky.

This technique enables you to save taxes by transforming progressively personal debts, which interest aren’t deductible, in a different debt which finances your enterprise.

Beware not to just shop around the best interest rates or down payment percentages! It may be a dangerous game!