You're not wrong, assuming that there is a clean paper trail: the loan proceeds were used for nothing but business.

If you pull out 700K could you invest and earn a minimum 56K net (8%).The problem with holding valuable real estate is that it's only value is all on paper and not generating any returns.

(I flip around 25-30 SFH a year) I’ve been making these ppl crazy, steady returns (~30% annual) which I think has actually spoiled them so I would need to probably go after the paper asset/Wall St investors for a syndication anyway..... 

Its not unreasonable to ask for deployment papers. 

It's incredibly easy to manage as I have phenomenal tenants when take care of the place, so I'm personally happy with the little money it makes + principal pay down + paper losses from depreciation.

An unrecorded not is toilet paper. 

With Smartmove the tenant needs to do another online application, and I'm already having them fill a paper application out, which seems like to much to a lot of tire kickers.  

I am trying to convince him it is in his best interest to have everything on paper to protect himself in the likely event she defaults.

Some deals looked great on paper, but then you park your car on the block and get a feel for the pocket and realize that it's not something that you are comfortable with.

If it is a fire safe, it will most likely have papers in it that will clearly show who left it there.