@Jon Ankenbauer you won't be able to keep the land separate from any future construction loan.

@Craig Holland Land is often sold with owner financing, in part because buyers have a hard time financing it, and in part because buyers often only need a short time before they can build on the land and refinance out of the seller loan. 

Instead of a traditional down payment, I would give them some money (maybe just to bring the loan back to even).The upside if taken over the loan at the current balance, with some rehab and hopefully getting the front lot back would be a nice ROI. 

Pretty common, you can definitely use commission as down payment conventional loans and not have it count toward IPC as long as you're on the loan. 

If he has a $5MM loan in place, what was that used for / is it coming due/ was it short term/ etc.?

Since the original loan was apparently for a primary residence an LLC could never qualify because it isn't a person who would owner occupy the property. 2.

Hi Shayan,It definitely doesn't hurt to get another quote from a different GC for sanity check.DSCR loans won't work if the property is not rental condition and it won't fund any of your rehab budget.

@Ashish Acharya I have found that I get better terms for personal loans. 

By definition, these type of loans are not the same quality as what is traded on wall street. 

While it provides opportunities for buyers who may not qualify for traditional loans, it's important to ensure affordability and long-term sustainability.