However each bank may vary especially local banks and portfolio lenders who do not sell but rather retain the paper they write.A person may go with option B because the the cost of funds to float this project from their "private lender," might be 12% while with a conventional lender's costs they are 5.625% 30 year fixed so you save the 637.5 basis point spread between the rates each month assuming all else equal.

He modifies boilerplate note documents to make them specific to private money investors and sets up pretty much anything we need.I keep him on retainer for $500 per month, and all of my closings have no costs on his side.

Source documents are needed to show and justify all entries on any settlement statement, documents are to be retained for three years as well.I would be suspect to any closed sale transaction accomplished without a sale contract, that being so unconventional I can only think of the justifications for not providing a contract would be to withhold details of the transaction. :)

What financial muscle, bonding, etc. do you have in the unlikely (debatable) event that an investor sues?

That is true with any professional to retain thier services as a consultant.

Between 2009-2011, there were a flood of major complaints by consumers who retained contracting services in all boroughs and surrounding areas.

Been there and it's absolutely not a tax issue alone, so I have to stick to that, a C-Corp needs serious money to be taxed twice and you need to be in a higher incomr leelel to pay off, but retained earnings can have advantages.

Time periods vary, LTV can vary, it depends too if the lender is funding or if they sell, retain servicing or release servicing.Contracts do not sail through because of a HML is being used, ask Realtors about experience with them, some Rs will try to avoid deals with unknown lenders, it can be faster if they do what they say and not back out at the last minute as some do.

Married couples who divorce can more easily have a judge order who is responsible for what debt, who retains interest in each asset, etc., and a spouse is usually protected with property titled as tenants by the entirety or JTWROS, where if it's a partnership w/ tenants in common, a break-up could mean your ex-partner sells their share to their brother or stranger or forces a sale to get their money back out.

Money paid, regardless of method is retained by the optionor, seller.