If a buyer has the financial capability to handle possible temporary negative cash flow and ability to refinance in the unlikely event the note is accelerated, and the seller has the ability to do a background check on the buyer and reach an intelligent decision, then the benefits of a real property transaction without the expense, time and qualifying necessary to obtain new financing and perhaps the benefits of a lower interest rate can successfully accrue to the benefit of both parties to the transaction.If the buyer is an undercapitalized inexperienced recent “graduate” of a guru program and the seller is willing to sell to anyone, whether breathing or not, then the transaction has a high likely hood of ending in disaster.When both parties are knowledgeable and understand the risks of the transaction, nobody is “taking advantage” of anyone else.  

Out of curiosity, how many people are familiar with the NAR Lawsuit and what will come of it?

Just out of curiosity, what deals are you doing that get you a 10% return?

The key features that make it more efficient that are hard to replicate else where is that the interest is simple interest similar to commercial loans (rate/365Xbalance daily), there’s a 20 day grace period before the prior period’s accrued interest is billed/added to your balance outstanding so you can keep chipping away at your daily principal balance with your deposits from days 1-19th each month before prior month’s interest is even billed (on the 20th/21st usually).The current CMT or constant maturity treasury index is less volatile than prime index that most heloc’s are based on (most bank commercial lines are based on 3-5 year FHLB + 225-275 BPS or 2.25-2.75% margin).

The loan is interest only and it accrues and is paid when the loan is paid off - there are no monthly interest or principle payments during the life of the loan.

Wait patiently for the tenant to buy real estate, then record the judgment in the county where the property is located in order to obtain your lien -- the balance of which has been accruing interest nicely in the interim.Anything else is a waste of resources.

Out of curiosity, you mentioned that your dream project is a solid fourplex.

Out of the 5 deals I am LP in, Rod's are giving me the top 2 returns (primarily due to fixed debt) while others, not so much but their returns do get accrued

I have picked up a curiosity and even passion for short-term rentals and hope to own my own STR property in the area of the University I am attending. 

The investor has an advantage because he/she has already spent the money and accrued the interest for the opening bid.