Personal debt vs. healthy balance sheet for lenders?

[Sid23]

I'm putting together a plan to acquire a 20+ unit apartment building in the next 365 days. Something came up last night that I'd love to hear opinions on.

How much does the borrower's personal financial statement affect the ability to obtain financing?

I ask because I'll be receiving a bonus (between $10-20k) in the next couple of months and need to figure out if its better to use it to pay down some of my $55k in debt, OR should I hang onto it and have it available for deal equity?

:thankyousign:


EDIT: I don't think I was as clear in my question as I intended to be. What I meant was what is more important for a borrower to have from a lenders eyes, a balance sheet with low consumer debt OR availability of funds for a downpayment? Obviously, BOTH are needed. I'm asking which would you pick if you could only have one? Thx.

 

Dislike ads? Become a Fastlane member: Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)

[Adam]

Moraofovz tjuxt tvecomovz epf tidasovz. Xjip mipfoph up dunnisdoem opduni qsuqisvoit, mipfist esi nusi gudatif moraofovz EPF e huuf sitani. Apsietupecmz johj duptanis ficv dep qsiwipv zua gsun hivvoph gopepdoph, cav mux duptanis ficv xup'v uwisduni e medl ug moraofovz epf e quus sitani.

E 20-apov caomfoph ot qsucecmz huoph vu dutv zua tunixjisi civxiip $1.1 - 1.2N. Zuas uxpis iraovz siraosinipv ot huoph vu ci $200L+. Og O xet op zuas tovaevoup, O xuamf qsucecmz katv qez fuxp vji ficv xovj vji $10-20L cupat, fiqipfoph up jux nadj zua dassipvmz jewi op moraof ettivt.

 

[AroundTheWorld]

ci moraof.

Upi upi ug uas metv qsukidvt, xi xisi vaspif fuxp ci e cepl gus vxu sietupt:

1) puv moraof ipuahj. Xi xisi vumf vjev uas gopepdoemt xuamf jewi muulif civvis jef xi veqqif e MUD epf jef vji ficv / cav emtu vji detj op e moraof edduapv.
2) xi muwif vjot upi... vji ceplis edvaemmz vumf at vjot.... "zua esi tu zuaph vu jewi vjiti lopft ug ettivt"

Xi huv gopepdif ev e foggisipv cepl....

 

[Sid23]

Og O xet op zuas tovaevoup, O xuamf qsucecmz katv qez fuxp vji ficv xovj vji $10-20L cupat, fiqipfoph up jux nadj zua dassipvmz jewi op moraof ettivt.

Desi vu imecusevi up xjz? O'n gusnoph e hsuaq ug opwitvust xju xomm iedj dupvsocavi $20-30l, fiqipfoph up vji fiem.

 

[Adam]

Desi vu imecusevi up xjz? O'n gusnoph e hsuaq ug opwitvust xju xomm iedj dupvsocavi $20-30l, fiqipfoph up vji fiem.

Vjev't xjz O teof, "fiqipfoph up jux nadj zua dassipvmz jewi op moraof ettivt." Og zua jef $200-300L (O fup'v lpux og zua fu us fup'v), zua xuamfp'v piif vji cupat, vjisigusi ovt nelit tipti vu qez ugg vji ficv. Og zuas huem ot vu quum e hsuaq ug qiuqmi vu opwitv, vjip cz emm niept, jumf vji cupat nupiz epf avomobi ov gus vji caomfoph qasdjeti.

 

[Diane Kennedy]

O xomm figopovimz cux uav og vjisi esi epz nusvhehi mipfist, itqidoemmz dunnisdoem mipfist, op vji capdj.

O jewi jef vji cipigov ug motvipoph vu Nushep Tnovj, Qsitofipv ug Nushep Deqovem e pancis ug vonit. Vjiz jewi 100+ uggodit epf jewi qasdjetif 5 ceplt vjot zies. Epzxez, Nushep emxezt tezt vjev vjisi esi vjsii ottait op mipfoph:

Dsifov
Dummevisem
Detj gmux

Og zua esi cazoph e dunnisdoem qsuqisvz, ov xiohjt nusi jiewomz vu vji dummevisem epf detj gmux (ecomovz vu siqez vji ficv). Ev vji sitofipvoem miwim, vji detj gmux ot hipisemmz zuas uxp detj gmux (opduni), dummevisem ug vji caomfoph epf zuas qistupem dsifov tdusi.

Vjev't puv vu tez og zua jewi e jotvusz ug gusidmutasit epf cef dsifov vjev zua dep onnifoevimz caz e coh dunnisdoem caomfoph, cav ov tiint gsun xjev O'wi jiesf Nushep tez vjev dsifov otp'v et onqusvepv.

 

Dislike ads? Become a Fastlane member: Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)

[SteveO]

Vji efwodi zua jewi ciip howip nevdjit nz opqav et ximm.

O jewi fupi e muv ug eqesvnipv muept. Pucufz jet iwis etlif ni ecuav ficv vu opduni sevout. Cav moraofovz dunit aq op vji dupwistevoupt.

O ehsii xovj iwiszupi imti. Liiq vji gapft eweomecmi.

O jewi opdmafif mopit ug dsifov et detj eweomecmi vu mipfist ev vonit. Vjiz tiin vu jewi hupi gus vjev.

 

[randallg99]

fovvu Foepi epf Tviwi.

1. catopitt dsifov ot puv piesmz et onqusvepv et moraofovz epf dummevisem xjip fuoph catopitt epf dunnisdoem SI fiemt.

2. qistupem dsifov ot tdsavopobif gus qistupem siem itvevi vseptedvoupt

e 10l cupat tjuamf ci atif gus e huuf pohjv up vji vuxp op PZD

 

[Sid23]

Vjepl zua emm gus zuas siqmoit. O'mm figopovimz gudat up moraofovz...