Should the project fail, it can be very harmful to you financially for many years - if not the rest of your life - and extremely inhibits your ability to have future success in the real estate business, or even buying or renting your personal residence.If I understand your post correctly, you can expect ever member of the LLC to be required to be personally liable and financially responsible for repayment of the debt.I would imagine a non-recourse loan would probably have a much higher loan-to-value ration to ensure a safer loan and higher interest rate because of the higher risk factor.Did anyone track how many financial institutions had liquidity problems, closed, or were sold the past 10 years?

Sometime I get surrounded by crazy and I doubt my common sense, so it is nice to hear I am being rational.

It didn't matter how much I tried to rationalize it away, it took several days for me to get past it.So, I think a lot depends on what actually happened: Was it a major blood bath or jealous husband?

Inspection/appraisal could run $1000.So, you're looking at about $8500, plus your pro-rations...though a good mortgage broker could probably tell you exactly how much...

I am in the process of building my portfolio and unless you have another source to constitute the DTI ration requirements then you are going to have to get the rental income seasoned.

Agree with John I am also going through the process right now Carl and here's what I've found the want the ration John mention at least 1.2 debt coverage ratio.

I thought this was worth posting as well:Milton Friedman.....Greed Is GODDPeople are, by nature, rational self-maximizers.

This challenge is typically, but not always, a combination of adverse credit issues and an immediate need for liquidity (cash).A rational borrower would not seek out a high interest alternative loan if a conventional loan were available, so in that sense, it’s not a stretch to describe a hard money loan as a loan of “last resort”.

I just don't see it...I've certainly heard many opinions...but still cannot rationalize in my mind how the good of what I do cannot be seen...How about how my work helps others in need...how I am changing one child's life at a time....I am sculpting young minds and hearts....why doesn't anyone ever comment on the good that can so easily be found in my trade?

They may rationally think, "The temperature in the house isn't going to change my decision about whether I like it or not," but I'd be willing to bet that most buyers take subconscious notice of things like that and it *will* factor into their buying decision.