It is rewarding when I receive repeat investors or referrals.

If you want to be a lender, you need to consider the risk/reward. 

For those of you experienced in finding undervalued properties, what are the biggest risks and rewards you've encountered?

Do you rely on references from previous lenders, or do you request more detailed project reports?

@Michael CliffordRecommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

Paying above market to gain other benefits is sometimes a difficult pill to swallow, but for the unbiased investor looking for the best” ROI the risks and rewards must be analyzed rationally.  

Referals are always great, you could provide current tenants a discount for anyone they get to sign.

They have to recognize risk versus reward.  

For future reference, try using Door Depot or Magnolia Windows and Doors; both are great Chicago vendors that we have used in the past.

By Owner's First and Last Name: Cross-reference any legal actions involving the property owner.