I hate that the legal system gives enables these buyer to get money but I do understand its a bottom line business and whatever is cheaper wins...this is a good point and why buyers and sellers should use licensed real estate brokers who have E and O..

You can if you want, but if this loan is from a well known, licensed, reputable lender, then its similar to getting regular mortgage.

What I have to work with: - An LLC (currently just run STR taxes through this)- A Type S Corp (I run my ad business through this, but will shift it over to construction)- A General Contractors license in the state of Oregon, tied to Type S Corp (have had and maintained since July of 2022)- A construction skillset. 

Hi everyone, I am a newly licensed Mortgage Loan Officer in Texas.

I see this question on my RE broker CE occasionally and thats the answer at least in the states I am licensed in.. 

Also pretty certain you have to have the proper licensing in most area to do this kind of lease structure legally...

New to BP my name is Danny and wanted to get some suggestions on the best strategy as I look to purchase my next home.Got my real estate license in ‘22 but never hung it as I don’t intend to be a full time agent.

Ask about the maintenance history.Units: Visit as many individual units as possible to assess their condition and note any necessary repairs or updates.Structural Issues: Be vigilant about signs of water damage, mold, or pests, which could indicate larger problems.Safety Compliance: Verify that the property meets all local safety and building codes, including fire alarms, extinguishers, and emergency exits.Financial and Operational AspectsRent Roll: Request a detailed rent roll to understand current rents, lease terms, and tenant occupancy.Expenses: Get a breakdown of all operating expenses, including utilities, maintenance, insurance, property management fees, and taxes.Income Verification: Ask for historical income statements (preferably 12 months or more) to verify the revenue.Vacancy Rates: Inquire about the historical and current vacancy rates and how they compare to the market average.Tenant Profile: Understand the tenant mix, including residential versus commercial tenants, lease lengths, and tenant turnover rates.Property Management: Find out if the property is currently managed by a professional management company and if you will retain or replace them.Legal and ComplianceZoning Laws: Ensure the property complies with current zoning laws and inquire about any zoning changes that may affect the property.Rent Control: Determine if the property is subject to rent control or other regulations that could impact income.Permits and Licenses: Check that all necessary permits and licenses are up to date.Value-Add PotentialRenovation Opportunities: Identify areas where you could add value through renovations or upgrades.Rent Increases: Assess the potential for increasing rents based on market rates and property improvements.Additional Income: Explore opportunities for additional income streams, such as laundry facilities, parking fees, or storage rentals.Environmental ConsiderationsEnvironmental Hazards: Check for any environmental issues like asbestos, lead paint, or underground storage tanks.Flood Zones: Verify if the property is in a flood zone and the implications for insurance and risk.Questions to Ask the SellerReason for Selling: Understand the seller’s motivation to gauge the urgency and possible negotiation points.Recent Repairs and Improvements: Ask about any recent capital expenditures and future planned repairs.Tenant Relations: Inquire about the relationship with tenants and any ongoing disputes or issues.Due DiligenceProfessional Inspection: Hire a professional inspector to conduct a thorough examination of the property.Appraisal: Obtain an independent appraisal to verify the property’s market value.Legal Review: Have a real estate attorney review all contracts, leases, and legal documents related to the property.By covering these aspects, you’ll be in a stronger position to make an informed decision about your potential investment.

Steve you probably thought of this but in your state you can be the bank without a license and with your very deep knowledge making new origination's for investors could be a very nice play that will keep you engaged somewhat mentally and returns should be 12% easily and for you extremely safe.

And then I got my real estate license in WA.So, if you want to get more efficient in your time spending in expanding your portfolio, I'd say go with an agent who will bring you the most value and safe your time.