I've watched enough Instagram fail reels to know this is a bad idea.

Yes, there can be external reasons - like a stinky factory next door - but mostly it is because bad landlords or property owners fail to maintain their structures and fail to enforce leases and rules.

The pass or fail test of cash flow is taking more significance than all the other positives it brings.

Maybe picking up failed syndications?

well i get it.. however if you do a lease option with non refundable option money up front and they fail to perform your done.. kepe the money and resell.. if this is the pac nor west things are still moving briskly for development ground..

The involvement of onsite management, often seen as a potential red flag, can lead to the property failing crucial qualification tests.

"this is no more risky than buying the property for all cash at the price point equal to the loan balance"But TBH, that seems fairly high risk of turning into a time sinking headache if the borrower's project fails. 

If you are successful, they say it's because of all the money you make in your 'day job' and if you fail, it's because you spent all that time learning about non-financial things.

I had one concern about the older heating system in the property and needing to replace it soon, but OCF was even willing to add a clause to the purchase agreement where they would replace it if it failed within the first year.Communication has always been top-notch, which is exactly what you want as an out-of-state investor.The estimated cap rate has been spot on at 10% so far, so OCF does not inflate the estimate to make sales!

The insurer says that the CC on file keeps getting denied.The borrower is failing to respond to calls/texts/emails/letters regarding the situation.The mortgage that was signed/recorded permits the lender to recover any charges associated with the need to apply this type of insurance policy, but doesn't specify how those charges are to be recoveredIn this example, the annual premium for the FPI that I (Lender) paid is roughly $1000.