Encourages Larger Investments: By offering higher returns at higher tiers, you incentivize investors to allocate more capital to your projects.Builds Long-Term Relationships: Investors appreciate being rewarded for deeper commitments, which helps foster trust and repeat business.Scales with Your Business: This structure can align with the complexity or scale of your projects, ensuring that you have the resources you need while staying competitive in the market.Key Benefits to InvestorsSecurity: Deals can be secured by tangible assets, such as a deed of trust or promissory note, providing peace of mind.Flexibility: Payments can be structured to suit the investor’s needs—monthly, quarterly, or upon project completion.Attractive Returns: With returns starting at 15%, investors often see better yields than traditional investment vehicles, like stocks or mutual funds.How We’ve Implemented ThisThis structure works particularly well for our large renovation or development projects where multiple investors may be involved.

Of course, every owner's situation is unique and factors like the legal entity involved, purchase date, adequate passive income that can be offset with the cost segregation study, etc., will need to be considered.

who are involved in wholesaling or other real estate ventures.

That complicates enough I'd consult with an entity/asset protection pro.I don't hold residential assets in LLCs unless partners got involved. 

The LLC can sign an agreement with the debtor (mortgagor, that’s YOU) accepting liability for the debt, but that’s only between the two parties involved in the agreement.  

I'm involved in too many things, but that's what happens when you have a family and kids to support.

There are some people that get lucky and earn cash quickly, but they generally hide the fact that it was pure luck or how much work was involved.

In rising markets, you might want to hold onto some properties longer to maximize your returns.By focusing on these areas, you can build a solid foundation for a scalable distressed property investment business and navigate the transition from individual deals to a thriving operation.ConclusionScaling a distressed property portfolio involves more than simply increasing the number of deals; it requires a fundamental shift in the way acquisitions, financing, and operations are structured.

For an SBA hotel loan, the SBA may guarantee say 30% of the loan and a traditional bank takes the next 50%...total LTV/LTC of 80%...will vary by business but it's higher/better than the previous replies (otherwise, you would just get a traditional commercial loan without the SBA involved). 

Sometimes occupants still live there and eviction is not easy, and I have even heard a story once that the yakuza are involved in the construction and real estate business and exorted money from buyers through occupants in these properties.