I purchased a duplex in Saginaw from them in late 2023 and should have seen the red flags from the start.An early red flag was when my contact Katee was doing a video walk-through of the property that I ultimately purchased.

Having developed a majority of my career in CA the regulations and red tape for construction and development are intense. 

Rates that are too low relative to the rest of the market are a red flag.Agreed granted many of the HML have a sliding rate scale based on  ARV  and experience  and maybe a little fico in there. lowest I have personally seen was 7% and 2 points.. and of course junk fees.  

I’ve developed a Comprehensive Investor Report (CIR) for a property in Palm Coast, FL, designed to be transformed into a luxury rental asset while serving as the foundation for a scalable asset management strategy.Here’s a quick snapshot of the deal:Property: Red Birch Lane, Palm Coast, FLCurrent Value: $350,000+Mortgage Balance: $165,000Current Equity: $185,000Investment Required: $177,500 (for luxury upgrades and optimization)Projected Monthly Rent: $4,500 with 2% annual increasesTarget ROI: Full 1.5x ROI for investors achieved in 9 yearsLuxury Features: Smart home automation, designer finishes, professional-grade kitchen appliances, and more.I’ve also structured a capital distribution plan with a waterfall approach:8% Preferred Return for investors.Full Return of Capital to investors before profit splits.Post-ROI, a 20/80 split (Investor/Management) ensures long-term alignment.

The voters in Red States would never allow a national rent control.

Although not tragic, still a small red flag - ok so 24,800 leads to go.While taking a break from the email task, I came across this BP thread - WOW! 

Affordable housing is RED-hot at this time, especially if it's decent 3br+ housing sub $2k.   

I did all my other due diligence like asking for paystubs, W2s, Tax returns, Employment verification, bank statements etc etc and did not see any red flags overall.

Great question Todd, first red flag is asking for full payment upfront.

Have you had any red flags in the process so far?