We’re developing onto an existing residential property through the addition of an ADU we plan to rent medium term.

The size of the deal makes a difference.Larger apartment complexes are typically not advertised outside of the Brokerage webist and lists, so unless you're on their list, you may not know those deals exist. 

We are looking for $3.6million which would take out the existing mortgage on the property of $535k.   

If a lien already exists, but hasn't aged, to where it can be converted, then it's worthless?

DanIf you ALREADY have TITLE to the home Sub 2 their existing loan and If the payments continue to be sent in to the lender, taxes are paid, and insurance is maintained the lender will in all likelihood continue to accept those payments.

While it’s true that most agents gauge a potential client’s seriousness by the existence or absence of a pre-approval letter, I think you can ease concerns by being honest with agents and voicing a preference to receive a lender recommendation from a trusted partner - which is what your agent should be from beginning to close.

There's likely not a single lender that exists that will allow a 100% CLTV at purchase.

THIS $1,425,000 WRAP AROUND Note would be INCLUSIVE of the existing underlying 1st lien ($270,000 @ 2.875%) .

Additionally problems that may exist that the title company has no control over gets blamed on them.

Those with real subject matter expertise get the year 1 return that no longer exists in more mature national park markets.