The naive and unsophisticated Tardus participants think “I started with $5,000.  

Never assume these types of lenders will behave like institutional lenders just because they use the same phrases.

That is the true value of participating in things like this that are a bit more involved. 

1.Activities That CountTo meet the material participation criteria, you must log your hours in a detailed and ongoing logbook throughout the year.

Hard money, which is most commonly from an institutional lender (either a broker with a white label setup or a lending firm), is generally available, but you will need to meet experience requirements to obtain funding from these kinds of lenders.

A borrower must choose his or her own contractors to perform the needed renovation.Ø All Contractors participating in the HomeStyle Renovation Program must complete a Contractor Profile Report.

Structuring the Deal with a PartnerWhile your partner cannot directly participate in the loan, there are ways to structure your arrangement to reflect your 50/50 partnership:Option 1: Post-Purchase Equity SaleYou obtain the 203(k) loan in your name as the owner-occupant.After closing, you sell your partner 50% equity in the property via a quitclaim deed or similar legal instrument.Your partnership agreement would outline each person’s roles, responsibilities, and share of profits.Note: Be mindful of FHA’s rules around title changes and ensure this doesn’t violate loan terms.Option 2: Partnership Contribution AgreementYou both contribute to the down payment and renovation costs as outlined in a partnership agreement.Your partner’s contribution could be recognized as a share of the equity in exchange for funding, services, or property management.The partnership agreement would detail how profits, responsibilities, and equity are split.Option 3: Joint Venture AgreementStructure the deal as a joint venture, where you own the property personally (required for the FHA loan), but profits and roles are split per a formal agreement.Your partner could receive equity-like compensation through profit-sharing without being on the title.3.

This means more opportunities for the investors who can see the forest from the trees and it also means that I don't need to participate in a bidding war when I want to but a property there.

I have great tenants that are participating and I have had awful tenants participating in the program.

This is bank loan that this depository institution made to you using depositor funds.