Issue the loan to the borrower's entity (LLC).Either be available to receive a call or return the call as swiftly as possible when the borrower comes calling.Allow the borrower to have multiple open loans simultaneously (if all parties are comfortable with it) to help the borrower grow their business.Have loan products that help the borrower to expand their investing options in relation to ground-up construction and/or multifamily.Have staff that are knowledgeable to investing that can assist and understand the borrower's concerns or requests.Just a few that come to mind. 

Having the bare minimum can be okay but it also puts them in danger if something should cost the HOA and when that account goes to zero or under 10% they generally raise the HOA fee's.

At that rate the investments cashflow nicely.One big concern in this model that some investors are still being talked into funding ground up construction.  

I believe the risk of taking away less in our current market to be a concern.

Not concerned at all.

I'm sure there's some anonimity on assets and he owns more than I know about, but he's never raised a concern with someone knowing about his projects. 

The tenant threatens to get lawyers, my concern is their safety, but I can’t get any justification to make improvements to the property for security.

The transition into and out of LLC was my biggest concern because it might be viewed as a short holding period, but it seems to be fine. 

He may have taken a plea or plead guilty to a lesser charge or even been found guilty with no jail time, but with the stipulation he be registered as a sex offender.Your main concern should be what he was charged with.

I will admit when I had my first investment property at 24 that I did not realize all the legal aspects of RE and all the laws concerning what you can and what you cannot do.