Originally posted by @Natalie Brown:@John Thedford the loan amount is $488k...100k down I suspect you may have a fake lender there.and on top of that your borrower maybe week if they cant go to a local brick and mortor lenderbut have them try these guys.Lending home limaoneVisio Peakany of these can do the deal .. now it takes a special license to legally lend in TN so do check that out.. if these companies are not licensed there then you know for sure your dealing with frauds.

If Deal A and Deal B are identical except for Deal A being sponsored by a less experienced sponsor, which would you prefer as a passive investor?

That lawsuit is a claim for fraud, and that’s what fraud typically is...a misunderstanding and someone being “injured” and wanting to hold the other responsible for it.

@Regev Israel keep in mind that duplexes usually are located around other duplexes, and even if you convert to a SFR, it may not hold the same ARV as an identical home with only other SFRs in the area/street. 

This was fraud in epic proportions.

I will say though things have gotten tighter as the amount of fraud has gone up..

That's mortgage fraud and it's a felony.FHA actually checks up on "occupancy fraud" and it's more than checking that mail is going there and the lights are on.Don't mess around with this stuff. 

Misrepresentation and fraud.

The trip distance I can (if needed) calculate with Google Maps at the end of the dayI think that (Google Maps) would be honest reporting.But just guessing ODO meter values is fraud.

Arv is estimated between 125-135k from identical properties.