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.
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.
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