I have not committed yet, but am remaining open-minded.I currently work for a credit union and have learned a lot of credit worthiness as well as tenant screening/neighborhood renewal from all the podcasts.

Interest rate - fixed or variable, and if variable, how soon and frequently does it change and what does it change based on?

This past week, hundreds of people spent days in line ahead of the Saturday pre-sale for a new condo development on the waterfront in the False Creek (Vancouver BC) area.Those who couldn't commit to camping out themselves hired somebody to do the waiting for them.Chris Malkin and his team camped out for a week, representing out-of-town buyers and those who didn't have the time to stand in line.Malkin, who says he has clients from Victoria, Seattle, and even mainland China, described the condo-buying frenzy as "fun, exciting, but insane."

(I always fill it in for 30 days hence with my tenants upon signing.)So, bottom line is that the PM either misunderstood our insructions (which I find hard to believe because we couldn't have been more emphatic about not having any year leases) or - more likely - he was worried he couldn't acquire this tenant without a year commitment. 

(These are all commercial loans, made out to LLC or Corp)Drake Bank (Used to work with Jeff Carter)Home Federal Bank ( Jason Madson, awesome banker, if the loan over 0.5M will take longer)Granite Community Bank (Jake, president's son, smart guy, low origination fees)Round Bank (Andy Klassen, low origination charges)Bridgewater Bank (Tom Johnson, the fastest banker that I love, my favorite, higher than normal origination charges though, 2.5 weeks to close a deal for him, have been working with Tom since 2006)Merchant Bank (sucked in 2007 at the day of closing they backed out of the deal, didn't follow their commitment and instead of financing 380k for me at closing financed only 120k, I had to borrow money from somebody else at a very high rate, just to keep my word).The funny thing is that the banker from Merchant Bank was my instructor at the University of St Thomas grad school, teaching me a banking class next year when she screwed me over the deal :)I know Jeff Carter from Merchants, he used to work at Drake Bank and financed many of my deals, and then moved to Merchants.

If the S-Corp has frequent and significant passive income, such as capital gains or rental income, the S-Corp status can be revoked by the IRS and you become subject to all the C-Corp regulations as above.I'd own the properties as yourself - no sole proprietorship required, because it will be on a Schedule E, not a schedule C.  

We already have 7 properties that will commit to us and are ready to move forward in our planning.

This isn't something I want to contractually commit to, or even bring it up as a possibility, in case I don't have a large spread, or I have to rent it.So, could everyone give me their opinions on how to handle it if I can handle giving her the extra money in the back end?  

Yes it is common here as people's basements frequently flood during rainstorms.

@John Errico - I'm frequently in North Bergen, right next to Union City!