Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!

In my opinion, it doesn't sound like a bad deal.10% is more than you would get in treasuries and corporate bonds36 months is not a super long period of time.Seems like you are protected with 1st position.I would just do some background on the company - How long have they been in business, financials on how the company performed for the past 2-3 years, along with some background information on the sponsor/founder of the company.Best of luck.

Also remember, past performance is not indicative of future success, especially when you are playing with fire in anything that is highly levered or unsecured.

Maybe you can approach with a combination of selling the lowest performing or least desirable asset(s) and utilizing some for cash out towards reinvestment? 

Perform a credit and background check?

Of course low risk typically equates to low margins but passive for duration of lease for as long as tenant performs.  

Hi! My husband and I are looking to invest in property to both flip to sell and flip to keep for renting. We are SO NEW and still learning so much, but we’re struggling on deciding WHERE to begin. We are looking to in...

I'll check out TenantTurner as that sounds interesting, although Avail performs well as my one-stop shop. 

Ideally this is research you perform as part of your underwriting when deciding to build the JADU.  

If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.