IMO, many HMLs don't understand this and take advantage of a situation to advance thier self interests irregadless of the outcome to a borrower.A good lender can assess the risks, the viability of a project, understands the market, is aware of costs and liabilities as well as the legal aspects surrounding the business and from that determine what rate of interest and fees is ethically justified on a case by case basis.

Well you can use leverage in the stock market by buying on margin or using derivatives/options... but it is extremely risky ;)Another aspect is the ability to "short" stocks or make money on the way down.

My favorite part about real estate is the wealth building aspect.

When a new loan is made the bank will look at past rents but may allow you with a better expected income based on other aspects, like your management experience.

The tax aspects are onerous compared to buy and hold.

These are two aspects that any industry will look at to relocate or start up being close to an educational center provides a skilled (and unskilled) work force.

In my market Buyers who are upgrading are more receptive to a staged home.Investors who are looking for rentals tend to see the other aspects (ease of maintenance etc.)Marie,What cities do you primarily concentrate on in the Central valley?

That way you could at least start doing that one thing and making some money, and not have to wait until you learned every aspect of REI before you take action.

You and they will likely give a personal guarantee for any loan, so the difference will be in commercial lending guidlines.Since you are immediate family members, you'll be exempt from SEC fund raising issues as well as the SAFE Act if say your father makes you a loan personally if your home is included in all this.Yes, your LLC needs to be formed prior to purchase and applying for the loan, I suggest you spend a few bucks and see an attorney in setting this up, there are options and aspects of such an entity that simply are not contained in some internet LLC formoperating agreement.

Seems the only new aspect is no sale within 30 days.