I'm in the Reno Tahoe area and there are new standards that insurance companies are looking at when considering insuring your property. 

Hello Gustavo the standard Prepayment penalty for DSCR is 3 years but it possible to do 0 years.

. - Most DSCR loans come with standard 3-5 year early payoff penalties.

His motel has been shut down since COVID-19 for not being up to code, now, he has renovated it and water/electricity is running.

An IRS lien, code violations (weed abatement, grass cutting, boarding windows-doors, and demolition costs), HOA fees, water- sewer bills all go along with the property providing the property has any of these. 

Right now we are seeing land taking some decent hits (especially what your selling) as disposable income is down and a lot of this land really has no way to be built upon because it lacks any source of water.

We don't want to leverage it for the sake of leveraging it, but we are sort of treading water. 

You should have set standards and you should always stick to them (always!)

Even back then there were a lot of high rise hotels where you could get a decent condo-style room with hot water, cable tv etc for really cheap ($15-20USD/night).

Most cases with Hard money it is temporary financing with minimal standard guidelines.