.- Regulatory Compliance: Ensuring all legal and regulatory requirements are met for private lending.Questions for the Community:1.

The monthly rent would likely be lower, but the entry costs and potential regulatory hurdles might also be less.Here are my main considerations:Rental Income: Higher in Berkeley ($2k/month) vs. potentially lower in the Midwest.Appreciation: Likely higher in Berkeley.Management: Easier to manage the ADU since it's close to home, but more regulatory headaches.Diversification and Simplicity: Potentially less hassle with a property in the Midwest.Given these factors, what would you recommend?

.- Legal and Regulatory Framework: RERA Approval: Verify that the project is registered with the Real Estate Regulatory Authority (RERA) and has all necessary approvals. 

You may have a grasp on this aspect, but there are items to consider that can play a big factor when choosing your land such as topography, existing zoning & platted lot status, minimum/maximum requirements such as parking, detention, size of building, setbacks.  

Although I did have setbacks and challenges along the way, my first 3 deals turned out great deals.

While this might seem like a setback, it offers savvy buyers a chance to find value and negotiate better deals.% of Original List Price Received: Sellers received 95% of their original list prices, down slightly from last year.

TR-31 (new mandatory security) requires substantial cap ex to meet regulatory requirements. 

Like other posters have mentioned - it will likely vary by lender - but generally most states will be OK with either Individual or LLC but there are a handful of states that due to various regulatory interpretations will require a LLC (or require a LLC to have prepayment penalties on the loan structure) Borrower = Individual or Entity AL, AK, AR, AZ, CA, CO, CT, DE, DC, HI, ID, IL, IN, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, NE, NH, NJ, NM, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VT, WA, WV, WI, WY Borrower = Entity only GA, FL, IA, MT, RI, VA (1-4 Units) Prepayment Allowed Vested Entities Only IL, NJ

Since the mortgage remains in the original borrower’s name, any missed payments could affect their credit and lead to foreclosure.Legal and Regulatory Compliance:Verify that reselling the property "subject to" complies with state and local laws in Texas.

A big setback.