I understand that we all would like to be able to buy cash flowing rental properties at a low interest rate with zero deferred maintenance and sit back and collect checks.

This helps maintain clarity and ensures funds are used appropriately.To streamline rent collection and property management, consider using platforms like Apartments.com.

After you close - use a loan servicer to collect payments.

However, in recent years, I've seen this used as a methodology of raising money to buy low barrier of entry real estate and make sponsors very wealthy collecting fees while leaving the LP's with nothing but capital calls and suspended distributions.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

The best part, they only get paid if I am collecting rent.

These guys talk a good talk and collect Appraisal Fees.

Like some others have said finish one collect cash flow save money and finish the other unit down the toad.

And they still owed me 200 dollars so I “reminded” them to pay again and I’ll be up there on Thursday to collect.

@Matthew Wright you're going to have a hard time doing this.Currently, you are bypassing a LOT of regulation requirements by letting the prospects pay the 3rd party directly.If you want to collect Application Fees, you will need to take on all the responsibilities & corresponding liabilities of Fair Credit Reporting Act and Data Privacy regulations.