I suppose here is a good time to ask you all, the “more expert than me-s” in the thread: on a scale of “5% return standard deviation bond market” to “15% return standard deviation stock market”, where would you put the unleveraged, post expense rental income of a well managed (aye, there’s the rub) SFH portfolio?

There is an issue for the investor of being unsecured for that time frame or longer.  

There are also 'mezz' lenders (typically for larger transactions) who will cover up to 90% CLTV and require you to bring the remaining equity to the deal, and additionally there is Gap Funding in the form of unsecured personal debt.The latter can potentially be the most expensive option, but allows for true 100% financing as there are no restrictions for how to use these funds, as they are unsecured, and generally obtained through personal credit, income etc (since there is no collateral for obtaining these funds).

but with that said, it seems like you're assuming OP will be able to have a high performing / top performing STR (which i think we would all agree would beat unleveraged market returns.) 

Both offered up to $40k, 12-14% rate which is higher but not bad for an unsecured personal loan. 

It sounds like Aloha Capital is selling “shares” which are not secured by real estate and would be considered “unsecured loans.”

What is the loan to value - this is for risk and secure the real estate to make sure its not unsecured.2.

The only place this would appear to make sense is in Class D neighborhoods which could cash flow.You have rights to income but nothing else - sounds like an unsecured note at the end of the day.Chris you make good points.  

Quote from @Anthony Stephens: It sounds interesting but my concern is that this would be an unsecured loan to someone who may not be in a good financial position.

well you have your own answer there are no lenders for entitlements  there are JV partners like me for entitlements but its not at traditional lending rates of course as its all risk capital.WI funded 3 entitlement deals in 2024 in Loudan  county VA to the tune of 7 figures in cash. since my client does not own it its unsecured ..