@Vic Caldwell  I like unsecured LOC for your examples.. but to use one just for equity for a down stroke on  rental is not what they are usually for and a waste I think.

Keep this conversation as broad strokes and don't feel the need to dive too deep in the details on specific terms but in general what are the more ideal situations where it makes sense to rent to own to someone else.Truth be told I don't think is a route that we'll be going down, but it would be interesting to learn more about it.

So if you buy your personal residence and then want to buy a rental, you may need to be able to carry the full amount of both loans within your debt ratio limits.However, whenever someone speaks of loan program requirements, they are talking in broad strokes.  

I see the game right now is who can get in & get out, before the bottom falls out.Sure there are people becoming wealthy, BUT I see people also losing there wealth via a hacker's key stroke.

I am a principal commercial broker specializing in retail properties for transacting and I am also a retail developer myself.I would have to know more about your personal situation and goals.In broad strokes you need to first see if you can do a 1031 exchange if you sell the existing property.

Just painting broad strokes with a general example.  

I thought I could win out, so I went through the hoops to get a personal loan so I'd have the POF (knowing I couldn't win without it) and by the time that went through, the other offer disappeared (I thought it was a brilliant stroke of luck!)

Gap funding and second position loans are highly highly highly risky.. unless your Very rich and can easily stroke a check to take the first out.. that's number one.2. in CA if its a balloon payment I am pretty sure ( at least it use to be this way) that you must give a notice in writing of the balloon 60 to 90 days before its due.. if you don't you can't forclose and when you figure out you can't forclose then you give the notice and your 90 days starts.. so you may want to see if the first lender gave his notice ... if not that may have bought you some time.3. personal gurantee's are WORTHLESS 95% of the time.. in these scenarios remember the borrower probably has little to no money in the deal since he has a first and a second.4. contact senior lender pronto and see if you can work something out if you think there is equity to protect yourself.. normally there is not... if the project is buggered up and default interest and such is tolling by the time you get in the deal equity is gone.But do drive by walk property and figure out what you got.. lastly most brokers on BP if they are not working with a major corporation you want to really be careful of some are flat scammers  although it looks like this broker actually did the deal made their fee's and poof gone.

I understand the broad stroke differences between a Joint Venture (Partners own a percentage of the property) and a General Partnership (Investors provide private money loans at a locked in rate of return) however I am looking for exit strategies. 

TWO  if it goes bad and you want to protect your second position or equity position can you stroke a check and pay the lender off ?