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Debunking Debt-to-Worth: What Is a ‘Safe’ Amount of Debt for a Real Estate Investor?
By reinvestor on July 30, 2015
As a real estate lender and investor, I get asked the same question all the time: One of the common misconceptions people have about private, asset-based lenders is that they only focus on the “loan-to-value ratio” of an asset, but a borrower’s personal financials still play a major part in qualifying for a loan, even when using private, asset-backed lenders.
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