What have been your biggest challenges and successes with hard money loans?

If the real property is in CA, you're definitely doing business in CA.Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

Challenges?

Challenges?

Some investors I talked to are doing MTRs and STRs (this seems challenging with competing with all the other AirBnbs in CA), some are trying to do a Joint Venture and buy multi-family. 

-Owen brilliant idea, it will be challenging to finance but a great idea and I hope you are successful. 

The challenging part comes when trying to find a reliable contractor and property manager.

Challenges?

As others have pointed out, interest income from a partnership can be classified as either "portfolio income" or "ordinary business income," depending on factors such as the nature of the partnership’s activities, the number of loans, and whether the interest is incidental to your main business or a core activity.

No - "DSCR Loans" are for residential investment properties only (with only a very minor exception for small mixed use properties that are majority residential in nature in every way)