I understand they have a little bit higher interest rate, but what are the risks of DSCR loans?

I hope this helps you have a better understanding. 

Full Disclosure is Required for Non-Accredited InvestorsIf any non-accredited investors participate in your deal, you must provide them with detailed disclosure documents.The SEC states:“[The company] must give any non-accredited investors disclosure documents that generally contain the same type of information as provided in registered offerings.”This is where having a Private Placement Memorandum (PPM) and Subscription Agreement becomes absolutely necessary.A PPM outlines:✅ The risks of the investment✅ The structure of the deal✅ The terms and conditions✅ The use of fundsA Subscription Agreement ensures:✅ Investors acknowledge they understand the risks✅ They meet SEC requirements✅ They legally commit their capital🚨 Not providing these documents could leave you vulnerable to investor lawsuits.4.

You will want to fully understand the tax reporting burden you will face. 

I understand that a fideicomiso is needed if we are wanting to own a property by a beach (which we would).

I understand this is not a requirement, but I have never received a damaged unit from an inherited tenant or any legal issues.

I've been doing some studying on short sales but still working to understand it better.

Once everyone understand the mechanics, and the results for all: they'll keep coming back to the table!

I don't recommend throwing the baby out with the bath water, and definitely make sure you understand the nature of the Mentor you choose.BP is a great resource to meet some amazing people. 

I understand it isn't easy, especially when new in the investing game.