Obviously, this is not a financing specifically for the overseas property and the borrower could use the money to do anything they want.If you want to use leverage in Mexico, the alternatives to local bank financing are developer financing for pre-construction properties (which is rarely given if you don't have the necessary personal relationships) or seller financing.

any simple alternate solutions you can think of?

Alternatively, you transfer the $1,000 rent to mgt company which records it as revenue, just like you would.

I have been involved in litigation in the past when a subcontractor ordered materials from China and the formaldehyde levels in the products were not satisfactory to the buyers of the units when they did their own testing and they filed a multimillion dollar lawsuit. 

They also might be local and if you bank with them there might be incentives for lending with themCon: A credit union is restricted on the lending options they can offer (they have limited money to lend) and they might not have another alternative that could be better for you. 

It will likely cost you more money, but you probably won't have another alternative.

I just wish the energy would be more of a positive "lets build this industry together" approach vs. the alternate approach.

That provision is in a section that has alternate sections.  

You can use this to help offset expenses if something bad happens while you begin the process of taking back your house.There are certainly risks involved, but you seem to imply that this is likely the best deal that you will get so you need to weight the pros/cons and see if it is a good fit for you.The alternative is to ask if instead of doing the deal sub2, if the buyer is willing to buy the home on a wrap. 

Very old, so to rebuild with exact materials exceeded the maximum on the original residential policy I had in place with Andover after their inspection.