But again, you shouldn't be locking up properties without knowing if you can perform on them.

. $100k performing I/O note for $90k), how do you classify the extra principal you get back when the loan matures?

Since this is an unconventional lending instrument, you have to make sure all your ducks are in a row (contractors willing to perform the work, dates of work start/completion, all additional paperwork completed, etc), but it was well worth it.

You may need to have survey performed on the property that might be paid for by you or by the seller or it may be common practice in the area for particular pardon you to pay for it.

In the end, I likely lost a good chunk of time and money by choosing price over performance.

In any given month (year) a property may be unprofitable, but as long as the overall portfolio is performing I am satisfied.       

That comment specifically relates to the investors who believe they are better protected by having a separate LLC collect rent and perform management functions independent of the deed holder LLC.

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!

So far, FTF has performed as advertised and I get timely and thorough reports on status for each project with financials, progress, risk profile and photos.There is a bit more risk associated with these one-off investments, however the low entry makes that more tolerable.

These firms specialize in this type of work, and as such, we rely on the information we receive from them to make determinations on how much capital we advance for improvements made to the property.In this case, we believe the third-party inspection company did not perform their duties.