CA there is NO possibility of a deficiency judgement on a purchase money owner occ loan.. borrower can walk and the worse that happens is their credit will have a foreclosure if the bank goes that route or a deed in lu. 

Perhaps slightly higher from an alternative lender but definitely not from a credit union and expect much higher fees.

Congrats, on both of those deals and, more importantly, on staying persistent to find your niche.Lots of misinformation on this thread.Andrey is not pitching anything or lyingHe is not expecting 30% IRR on every opportunityFinding and vetting trustworthy sponsors is not as hard as non-syndication investors thinkPerforming diligence on sponsors takes years, not hours or daysMany sophisticated LPs perform extensive diligence on sponsors and opportunities that is not discussed on BP (TLO reports on history of crime, bankruptcies, collections, credit, businesses owned, personal residence owned, employment, family members (including phone numbers), even traffic violations...the list goes on)Many LPs leverage sites like Ian's, 506 group, in-person conferences, and one another to analyze opportunities and sponsors together (it's a lot more sophisticated that the "what do you think about XYZ" posts on BP)There are tons of sponsors and opportunities that don't use short-term, bridge financing or max leverageMost are using 5-12 year debt, with inception LTVs in the 70s and year 2-3 LTVs in the 60s (and carry high reserves on top of that)The opportunities discussed on BP are only a small fraction of what's available in the marketPrudent syndication investing is just like anything else in life...it takes diligence and time. 

Norada was basically borrowing and owing unsecured debt, like a revolving credit card debt.

That affects your credit for instance.A better way to look at it is voluntarily making the mortgage payment for someone.

I have no debt aside from the properties and regular monthly credit card debt.

Their debts would include not just car payments, student loans, and credit card payments but also things like child support paid.

Also Mike, why is cash out higher with refi, do you mean just with the credit union scenario? 

Private lender will be close to a credit card interest rate for them to finance something like that.

For us we all typically use 0% business credit cards to furnish the property which can amount to $40-$60k+ depending on how crazy you go.