A post on the official Norada Capital Management website from 2022 (attached screenshots in addendum), boldly states the following:“Norada Capital Management offers investors opportunities to invest in Promissory Notes with fixed rates of return ranging from 12% up to 17.5% per year,” ( Link ).In explaining the use of proceeds from the promissory notes—specifically the entities Norada Capital Management, a private equity firm, supposedly lends to in order to generate these high annual rates, the company states that:“Three of those five categories that our company invests in as a private equity firm include e-commerce-based businesses very lucrative area, especially if you’re in the right area of e-commerce.

A common strategy used by investors, such as those operating through PadSplit, involves purchasing the property, completing basic rehab, refinancing, and then using cash for the interior build-out.Another potential red flag, even without converting common areas, is the addition of individual locks on bedroom doors.

One market shift and you're in the RED. 

Gaps in rent payments or undisclosed tenant issues should have been red flags.It’s good to see the OP trying to help their client navigate this, as acting promptly is critical for any chance of recovery.

And it says, "This one was bold and provided me with address."  

Quote from @Bruce Woodruff: Quote from @Peter Mckernan:Up front (First Contact) Red Flags - 1) Everything should be in writing and very detailed 2) There should be a very specific Scope Of Work3) They should not ask for much upfront $$, certainly no more than 10% - if even that.

**Ethical Concerns:** At the time I joined, certain marketing tactics raised red flags for me.

It gives you the flexibility to get started quickly and stay on track without the red tape.

There’s always demand for rental properties, and with the landlord-friendly laws, you don’t have to deal with all the red tape you might find in other markets.

Their guarantee to cover the mortgage if they don't rent the property is a red flag, too.