The first type is more hands on, direct engagement with the tenant and the property, the other one is more hands off, and work at a distance. 

This agreement is just like a listing agreement when you go list a home, you are hiring the right person for the job, so this is the same type of contract, but this person is hired to find you the right home. 

These loan types allow you to do up to 90% of the purchase price and 100% of the renovations financed as long as you meet experience, credit, and LTC/ LTARV requirements based on an appraisal or virtual inspection.

And I also think that the inventory in your market plays a large role in deciding what property type makes the most sense.In my market, there is a large abundance of the small multi-family properties, especially the 2-4 unit properties.

Can they be more hands-off compared to other types of businesses?

HELOCs are not available because they are residential loans guaranteed by individuals and what you seek is a type of commercial loan or credit line which are available to seasoned companies with proven financial track record.

We can typically close this type of loan in about a week.

I worked with developers and contractors for many years and the best way I saw this type of situation proceed was for the individual to partner with a mass homebuilder - depends on how big the property is - and also partner with a GC to install the infrastructure to the specs of the homebuilder.

What made you interested in investing in this type of deal?

There’s a rigid plastic type material that’s used in dairies and on farms that I’ve seen used.