I was thinking generally (and hypothetically) along these lines:* Deal with folks where we have pre-existing relationships* 10yr fixed rate - pay around 7.25% fixed for 10 years (this would be set at loan origination around the 10yr tsy plus 5.0%, or possibly the 30yr avg fixed rate + 2.5-3.0%); interest only ideally, or possibly 30-year amort* Right by borrower to substitute collateral to maintain the LTV (if we want to sell a property)* 1st mtg, 75% LTV on new appraisal value* One investor per property, in 1st lien position* Property rehabbed, seasoned for at least 90 days with tenant in place with term leaseHow have you addressed lender concerns around investment safety and illiquidity?

McKellar Newsom If the person is Canadian here are some banks:Harris bank (bank of montreal) will deal with loans 50% of purchase price but they will want to have a relationship with the buyer firstRBC Centura (RBC canada) not as picky to having a pre-existing relationship with clients and will do up to 70% of loan to valueWashington Federal- minimum investment $50,000 to $700,000 up to %65 of Loan to ValueTD Canada trust-not sure the details but I know some investors have used them.

This property sounds like a pre-existing but non-conforming use which predates the current zoning requirements regarding parking.

Just to update this , i went with a product called STM Short Term Medical , it is not a replacement for health insurance , has exclusions like maternity, pre existing etc.  

Especially if they have had a preexisting relationship from that buyer. 

The answer to your question will address the SEC issues - you need to have a substantial preexisting relationship with the person.

You actually want / should to do this with vague information (i.e. no live deal) so that when the time comes for a live deal you've built the required pre-existing relationship.

Keep in mind, as @Brian Burke stated, your LLC  members would still have to follow the syndication rules which entails for 506c - all accredited or for 506b - you must have pre-existing substantive relationship with all of them!

This as well as my preexisting desire to get into real estate has motivated me to reach out and ask for help.

I invite you to shift your mind set from recourse loans ( the ones you’re referring to) and start considering non-recourse options, which will take you the syndication route.When I started thinking about syndication, it took me a while to let go of my preexisting beliefs of having to control every single step of the process, including fully controlling the property.