Unleashing the Secret Power of Debt-To-Income for Real Estate Investors

In this special financing class for real estate investors, James reveals the following:

  • What's a front-end debt-to-income (DTI) ratio and what's a back-end ratio and how they play out when buying properties as a real estate investor.
  • The formula and how to calculate your own debt-to-income ratio and how to easily find software that will do it for you.
  • What gets included in your debt-to-income ratio and what is excluded.
  • What DTI is and what it is not impacted by and how to optimize it when buying properties as investment.
  • How to deal with weekly, bi-weekly, bi-monthly and annual income numbers for the income part of the calculation.
  • A deep dive into the underwriting guidelines and how they apply for real estate investors, Nomads™ and house hackers.
  • An example of a DTI calculation for you to following along.
  • What DTI you should be targeting for USDA, conventional, FHA and VA financing for both owner-occupants (like Nomads™) and investors.
  • How I'd grade DTIs so you can see when you're doing amazing or when you need to improve.
  • Re-arranging the DTI equation to determine your max debt load that you can carry for your specific income as an investor.
  • How rentals impact DTI... do they count as income, as expenses, do you add the rent as income and the PITI as expenses.
  • How the Real Estate Financial Planner™ software calculates DTI and your minimum monthly income required to complete your entire investing strategy for you.
  • What kind of history of property management do you need to be able to use income from rentals to qualify?
  • What different would a rental with just $50 more per month in rent make to your DTI? What about $50 per month less?
  • What are the exceptions to the maximum DTI ratio?
  • New DTI rules of thumb for quickly and easily determining the impact of more debt or more income.
  • Charts and unprecedented insight into how Debt-To-Income changes as you acquire more properties over time using the Real Estate Financial Planner™ software