Insurance difficulties are everywhere these days, but it seems there is at least one (expensive) option in most instances.  

It's all about realistic expectations.We've dealt with many newbie investors, that despite extensive chats with them to try & set proper expectations, buy a Class C rental - yet expect Class A results. 

I am Buyer A, who purchased a house requiring extensive repairs from Seller Z.

This certainly clears up a lot of concerns the noobies entering the notes space have.keep in mind this is Specific to California and each state is different.. for instance Oregon you may not fractionalize a note I learned the hard way on that one since I spent a decade doing them in CA It did not even occur to me to check with Oregon regulators and they hammered me and gave me a cease and desist.

We have also partnered with a reliable general contractor who will be investing in the project and has extensive experience in mid-scale hotel construction.

My extensive experience with heirs and probate tells me that nothing is as simple as just buying your BIL out.

So, with no foundational knowledge of real property, and no capital, his only alternatives are (1) “bluff” the homeowner into thinking he has the money and intent to close the purchase himself and or convince the homeowner he has an extensive list of cash ready interested buyers (“partners”) with whom he’s done dozens of prior deals or (2) pack up shop, write off the money invested in mentoring to a worthless investment, and decide IF real estate is right for home.  

I did not do extensive research.

For instance, if the parent is Texas Real Estate Group LLC, the following are acceptable: 1.

I have lots of single-family and 1-4 unit multis that I think it works pretty well for too.But, it's just a general rule and many properties are way lower and many properties are way higher.For instance, I have some office space where the tenants pay for most of the repairs. 20-30% is probably more accurate for that type of property.I have some 'nearly new' duplexes that have very little repairs or maintenance.