WRONG!

Otherwise, should something go wrong, the insurance company may deny any claims. 

(Again, nothing wrong with it, but I think answering it truthfully will help guide you to an answer). 2.

So I’m not sure the flexibility of the product is that attractive, but I could be wrong here.

Ok lets take a step back and please dont take this the wrong way or think I am being condescending however here is how loans go.1. you have the borrower  who I guess was introduced to you and is on BP and talks about doing JV s and deals etc.. 2. you agree to lend money on one of his/her projects.3. you identify the property and the amount your willing to loan.4. your borrower will open escrow so you get a lenders policy of title insurane and insure your docs are recorded correctly.. most will prep the mortgage or Trust deed but most will not prep the note they will want an attorney to do that.. 5.

I wish people could pause and listen to how foolish they sound sometimes when they have strong opinions about how somethings are so wrong on the one hand, but then on the other hand, they do the same thing only in a slightly different way.

Don't ever do something you know is wrong simply because you may not get caught.

If the wrong price is calculated, profit margins can quickly diminish or be wiped out completely.ARV and rehab should always be fixed numbers based on the investment exit strategy.

But sheesh that's just so sad and it does nothing but cause more pain and suffering for everyone else who isn't even involved and has to pay for the wrong doing of others, ie increased insurance etc.

This is wrong on so many levels, let alone; unethical.