Monthly Archives: August 2011

Lending on Asset Conversion instead of Income

Check your Guidelines

Well, first, consider that a lender/underwriter can do whatever the financial institution’s (FI) guidelines allow assuming they are consistently applied in a legal manner. So if your FI allows you to use asset conversion, you can.

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Beware Assumptions: 5,400 feet makes a difference!

I live at sea level but only two hours from Mt. Rainier. We had a very late summer this year, some would say we missed it altogether in the Northwest.

But Friday was a summer day. Warm but breezy. Lots of sun. And late August is a great time to visit Mt. Rainier as the wildflowers pop in profusion.

Right? Not quite.

A late summer at sea level, it turns out, means a late summer on the mountain. The wild flowers are not out yet. And on the Skyline Trail, you cannot even get past Myrtle Falls without traversing some snow.

Don’t assume…

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Fair Market, Liquidation or Book Value on the Balance Sheets

Lender question:

Do you use historical costs or fair market value in a partnership’s balance sheet?

Linda says:

That word ‘value’ gets in the way in accounting. There is Fair Market Value, Liquidation Value and Book Value. Then there is historical cost. Which is used when?

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