Essentially the lenders will be taking a risk on the property if they overvalue it.

Quote from @Devin James: Quote from @Dominic Mazzarella: Quote from @Devin James: Everything went wrong with this investment:   - Took 4 months longer than expected   - Cost $10K more to build than we anticipated   - Sold for $20K less than we anticipatedWe still profited with a 30% return on equityThis is why I love Real Estate InvestingWhen you do your diligence and stay conservative with your numbers, it takes something really bad to lose money.Here was the original post:My siblings and I are building a home in North Port, FL.Here are the numbers: - Finished Home Value: $412Kish - Land Cost: $19,750.39 - Construction & Permitting Costs: $304,897Additional costs: - Environmental Site Assessment - General Liability Insurance - Builders Risk Insurance - Construction FinancingWe will be listing the home this weekPhotos coming soon!! 

If you already have that where you live, why put those profits at risk?

HoltonWise is currently involved in litigation on the topic.

A law suit from a tenant can put your other assets in risk if they are inside that LLC. 

Are you involved in the tenant placement process?

Was he really involved in your deals?

As far as the sale of a property with a mortgage on it, that all gets sorted out at close. ie, you bring your money, the bank gets what they have coming, the realtor gets what they have coming (if there's one involved) and the seller gets the rest.

•KISS – Keep it simple stupid•Low risk as each unit is a small % of investable capital•Downside protection if properties are purchased in areas where they can be sold as residential homes. 

Nicholas, When vetting a syndication, every investor will do it differently because every investor has a different risk tolerance, comes from a different financial situation and has different financial goals.