I wanted to be able to put in some sweat equity and learn some of the skills needed in this trade.

You don't have a recourse because you took the liability on yourself knowing that is not his trade.  10 days later you have a water leak in the SAME bathroom causing the ceiling downstair to leak AGAIN.  

I think an equally probable scenario is that we'll convert it to a rental, and then look into a 1031 exchange if we think we can trade into a better-performing asset. 

I currently work in the turnkey investment world helping investors create a real estate portfolio, if you are ever interested in trading different strategies and goals, I'd love to connect! 

He is a contractor by trade and I am the sales and numbers guy to loosely define us.

This cap rate is not completely out of the realm of what things are trading at.  

I think you're right, it has always been a beneficial trade for both parties.I have not seen the inside yet, but the owner said he is more than welcome to show me once I have a pre-approval.

As time went on, prices came down because buyers saw the challenges with rebuilding--trade labor, insurability, not knowing what will be built on adjacent lots (like one lot where the owner built a house that looked like a concrete mushroom and that devalued the adjacent new construction homes built to more conforming architecture), and so on.The weakness with moratoriums such as these is that it is now illegal to offer less than FMV as of 1/6/25--but what was FMV on 1/6/25? 

Both offer unique advantages, but understanding the trade-offs is crucial for making the right decision.

By definition, these type of loans are not the same quality as what is traded on wall street.