Thorough vetting is absolutely essential in private lending to mitigate risks and protect your investment.Here are a few additional tips to enhance your due diligence process-Assess Their Exit Strategy: Whether it’s a flip, rental refi, or sale, make sure their exit strategy is realistic and aligns with market conditions.

Essentially, terms were prime +1 interest only for 12 months with only 1 discount point.

I agree on the point of your investment is not guaranteed and never fall in love with the sticker price of the offering (ie returns), you really need to look under the hood on these dealsBut active investing is not for everyone and if you do not have the time to manage your active investments, it’s not like the stock market where you have as good a chance to return on your portfolio doing nothing than hiring a manager - if you do not have the time nor ability it typically will not end well.

The GP was so open and transparent every step of the way with the different types of insurance that were essential, adjusters, replacement cost, debris removal, code upgrade, etc.

Conventional financing would be difficult as they typically require 12 months seasoning to use the newly appraised value.

For inspectors, ask about their experience with investment properties, typical issues in the area, and whether they recommend sewer scopes, especially for older homes or properties with non-PVC pipes.

Essentially they warm the sellers up and then prime them to sell and then pass the lead to you to close.

(typical California home). 

The extra cost is typically well worth the benefit. 

Horrible.The REIT is essentially a "blind pool" investment.