Here are some key red flags to watch for:🔴 Lack of experience: A borrower without a proven track record in real estate projects may struggle to navigate unexpected challenges.🔴 Overly optimistic projections: Unrealistic ARV (after-repair value) or underestimated rehab costs can signal poor planning—or worse, a lack of transparency.🔴 Incomplete or disorganized documentation: Missing detailed plans, financial statements, or timelines could mean the borrower isn’t ready to execute the project successfully.🔴 Over-leveraged finances: Borrowers with excessive debt or insufficient personal capital invested in the deal could pose a greater risk of default.🔴 Questionable property comps: Overstated market values or inappropriate comparables may mean they’re inflating expectations.As always, thorough due diligence is your best protection.

Real estate is all about relationships, and persistence is key.

Communicate is king and key in syndication.

SOS......I closed on my investment property last Thursday, lawyer, title co, realtors paid and keys handed over to buyer but the wire from the bank ( the title company uses) keeps getting rejected by my investment company.  

I left numerous contact me letters to speak to the owner to discuss options and potentially cash for keys.

You hit on all the key differences between banks and private money lenders.

Such as yard signs, lock box, MLS keys, showing appointment services, help in filling out contracts, and X hours of consulting advice. 

Simplified deal analysis focuses on cap rate vs. tenant risk, lease expiry timeline, rent-to-market comparison, and key metrics like Net Operating Income and DSCR.Good luck!

If we have to bring a key to them, it's a $20 charge.

@Matt J.As an out-of-state investor in San Diego, key tax and legal considerations include filing a California non-resident tax return for rental income or capital gains, managing double taxation with potential tax credits from your home state, and complying with withholding requirements on property sales.