Au plaisir de collaborer sur des projets futurs. :)

There are a few out here in the DelMarVa area, but I haven't found one that seems to understand the DE market, where I live currently, which makes it difficult to accept a hard money loan.

However, we do typically quickly analyze and look mostly at D/E (Debt-to-equity) of the borrower as well as their current ratio ( current assets/current liabilities).

While South Jersey isn't as bad as Central or North Jersey, it is still much higher than PA and Delaware, but because you're in the Philly metro market, the rent rates are not comparably higher.

I have been to a Delaware tax sale.

Two suggestions: Buy it on a lease with the option to purchase or master leaseOr find him a replacement property - this is easily done by hooking him up with a company that offers DST's (Delaware Statutory Trusts).

Thanks for your response After doing some research I found out that the property does need a little bit of cosmetic work I'm doing a walkthrough this Sunday so I will have a better idea of what work needs done the property was once a double that was de-converted, also there is a lien on the property of about 18k which raises great concern, seller says they will take care of the lein at closing.Thats all the info I have for now until Sunday.

They didn't like that payment.So- my guess is that it will have zero effect on your d/e, but they don't use common sense.  

He should be able to do this in a couple of days and likely will setup a Delaware LLC or LP. 

I de-leveraged Prior to the last (Great) Recession and this is probably why I weathered through it without much worry.As a lender, even a niche guy, I've watched who survives and who doesn't.