It can be awkward and scary but that is not the normal and there are safeguards in place if the sheriff is there.

That way you have the best of both worlds, you get the cash you need to do more loans and the ability to pay it down faster if you want while being safeguarded with a low payment in down times. 

Lenders don't want to deal with defaults so they put up obstacles to safe guard themselves in the form of cash requirements.Plan of having 30%+ of the total project cost in reserves.  

I'm saving it all in my rental file, and we'll use that frame of reference to build out our own, run it by our lawyer, and help safe guard the upcoming projects.

The International Monetary Fund (IMF) has published the results of research conducted into how lenders are likely to be doing their business in the future, and what new information and personal data these companies plan to start asking from borrowers in order to determine their credit score.The biggest takeaway is the seemingly inevitable shift from merely accessing credit information to also incorporating people’s online behavior into the process of deciding whether to lend them money necessary, for example, to buy a house.Compared to the way the system now works in most countries – these changes, which are expected to be coming soon, look fairly invasive privacy-wise, and with no “vision” of proper safeguards.

One way that you can safeguard your hard earned money is buy contacting the escrow company by phone for wiring instructions when you have a property under contract.

As you know investors do this everyday so you wouldn’t be doing the it without knowing what your boundaries are to safeguard yourself unless you’re a scam artist.

@Lamont Marable check your local building and fire codes...putting living space below grade carries a lot of life-safety requirements and needs to be permitted...worst case...if there is a fire and tenants cannot escape...and you knowingly put living space below grade without the required safeguards in place...RE investing career over...Just do it right if you venture down that path...hiring an architect is always the best approach to something like thisBest of luck

@Paul Riley I just opened a SD Roth with Safeguard Advisors.

What are some ways to safeguard myself against risk?