Effective communication ensures everyone is on the same page, minimizes misunderstandings, and helps address any issues promptly.Monitor Expenses Closely: Keep a close eye on your expenses throughout the renovation process.

That’s what many misunderstand about notes, you don’t own the property you own the note.

I guess I didn't realize they could be so low, unless I'm misunderstanding it, are they going to give me a 10 year loan for 1%?

@Michael Baum There seems to be some misunderstanding of what we (@Sarah Kensinger) are saying. 

But, I think he'll see that by loaning you whatever amount, the interest he gets is for loaning you money, not for paying for the property.I think you misunderstand. 

If I'm just misunderstanding, then I think the master lease/option strategy mentioned above is probably worth exploring.

This gives no leeway for misunderstanding from the beginning of the relationship. 

It is human nature to misunderstand risks.

If I’m misunderstanding, what do you put aside % wise?

If someone just says "Cash Flow," they're leaving a big opening for mis-understanding.