Personally, I strive to be as transparent as possible in all my deals, so that there is no mystery or confusion about the deal, so with that the disclosure piece has been a natural part of the process.As for pitfalls, you are now held to a higher standard and are expected to know the laws and regulations related to real estate transactions.

-----------------------You have, however, solved a little mystery for me through this explanation.

@Matt Powell  this model is VERY old news  its how the turn key industry worked prior to the GFC in 07 and 08 when lenders STOPPED doing investor refis for all but the VERY RICH.now as money is rolling again they are just bringing back basically the same products that existed prior to 08 nothing new mysterious or earth shattering here. the trick though is getting more than 4 refis and you can get up to 10 if your VERY well off and qualified or you go portfolio which new players are entering the space  B2R Colony etc.

Only real problem was when they lit fireworks last 4th of July and had the street pretty well ablaze in them,,,and my porch floor mysteriously now sports burn holes in it now,,when it didnt in June.

I could not get it, so I guess my looks will have to be a mystery.

@Karen Campbell,The fact that the rent is currently $1000 is per door is still a mystery and pain point on this deal for me.

Monday and Tuesday, he moved on to trying to memorize more and more of the algorithms.He is.He has not memorized them yet completely.He still has to use a written guide.However, he is solving the puzzle 100% of the time.This game of real estate is very similar to the Rubik’s Cube situation.Real estate is a complete puzzle and mystery when you are starting out.It’s difficult.You might as well be learning a language of a tribe hidden from human view for thousands of years.There’s no context.Yet, SOME OF YOU persist (a very small minority).If you persist, you start to figure some things out on your own.Then, you start to do more and more research, which leads to learning.It leads you to sites like BiggerPockets.It leads you to books, some of which provide step-by-step action plans.The point is, nothing in real estate is an unknown (from a learning standpoint).We’re not reinventing the wheel through all of this.100% of every process that we go through and have to learn, we can commit to a process in writing.As an example of this, if you choose to be a buy-and-hold investor, one of your algorithms will be to locate a house suitable for purchase.Then, once you have the algorithm, you can start to fill in the steps.It’s not rocket science.Your steps may include describing exactly what you’re looking for first.“3 BR/1 BA (at least) in Pulliam County that will cash flow at least $200 / month.”Awesome.Now you can exclude EVERYTHING ELSE.Then, you can outline a process for yourself.

That's all gone with the MLO Comp Rule, and the MLO must get paid the same regardless of loan terms (and mysteriously now everything is 30YF and no fancy "features" LOL), but that cuts both ways -- the MLO can't give himself a big fat bonus on just your loan, nor can the MLO take a pay cut just on your loan.

UNLESS yoru doing volume if your buying 1 or 2 houses in a year its going to be a challenge.Now I know when I build new construction I do maybe 35 homes a year personally.. we look at lot cost vertical cost of money to build  sales cost and what our profit we can make.. we factor that in before we bid on the lots you have to back into it based on end sales price.. you can't just build it and they will come and or it will appraise.. with the goal to make 10 to 15% on gross and if we do better than 15% that is a huge win for us.. but of course these are 400k and up.. so numbers are bigger but so is the risk. and we can't be like a high volume turn key company that does our yearly production in a month or two.I fund a few VEndors that do a turn key light ( is what I call it) they will let you pay cash for the house and they will charge you a fee to use their rehab crews and coordinate it all. then hand you off to PM.the reason PM is critical in turn key is you have a tenant base that is some what of a challenge to manage.. other wise none of these turn key guys would be in the business of PM unless they were going nuclear and growing it so big that it becomes a profit center in its own right.I hope some of this makes sense. its simply not a big mystery you have certain components that go into bringing a product to market and make it financeable.

Good luck to OP...and you while driving that pedo-van/Mystery Machine around town that you’re so proud of.OP to better “substantiate” - what make and model is your vehicle is?