De nada 😎I don't know that market at all (FYI, I don't see this is other Midwest markets where my CFO clients buy properties), but I suspect it's related to perhaps the international investors that agent may work with...they are often cash buyers as it's very difficult to borrow here if you're not a U.S. citizen.

We paid $1.775 million for the notes, worked out a modification with the borrower, and received the first 5 monthly payments relatively on time.  

Heck, you should mortgage your home to the hilt, and borrow every single dollar you can at 6-7% and crush it on the arbitrage.

Am I borrowing their money and paying them after the deal is closed?

To borrow against a free and clear portfolio in a creative deal.

Some lenders allow exceptions for transfers to LLCs owned by the borrower, but it’s worth confirming first.Explore transfer tax exemptions: Chicago doesn’t make this easy, but there may be exemptions or reductions for certain types of ownership transfers.

I would suggest approaching the borrower on an accelerated pay out with an incentive.

Have you borrowed any money for the duplex or do you have an investor?

Quote from @Lamier Guzman: @Jake Andronico what do you mean "until I need to borrow money at a 9-15%?

Hey @Brad Roche - We do a significant amount of renovation loans (both Fannie May & FHA) here in Chicago and prefer the Homestyle loan only because it's less stringent on the borrow about what they have to repair, and they provide the general contractor a material draw at closing which helps the project start on the right foot.I thought the minimum down payment was 5%.