Was the risk worth the reward in your situation?

These are very risk gambles that should only be attempted with money you don't really care about.  

If you do you may run the risk of piercing the corporate veil of your LLCs making you personally liable for business debts. 

Personally I’d stick with SFR or at 4 units or less for preferred financing and to reduce risk of the exchange failing.

Because this is the business we've built together, we enjoy working together, we each have roles that reduce the work load on the group and personally I like that the risk is spread out.

Risks and ContingenciesWhat happens if I can’t sell or refinance the property within the loan term?

My risk appetite is 80%.

For a partnership where you're providing all labor and the broker is funding the deal, a fair split typically ranges from 30-50% for you and 50-70% for the broker, depending on the value and complexity of your labor versus the financial risk they're taking.

This is often easier in lower tier markets where the appraisals are not indicative of how the property would sell in an arms length transaction.The other risk you run is over extension.

Not sure the final outcome, but I'm guessing that is a case where you think things are risk free, but I expect the purchaser was out significant legal fees that were not reimbursed and ended up not getting the property.I've always thought about this in the rare instance that a super nice and super valuable property goes to sale with a mortgage on it.