Different from mortgage:-Your monthly payment is just on your money you use from that credit line - for the first 3 years of using the money, you can pay back just the monthly interest and not the principal - no closing cost - the interest can change, its not fixedIts important to know that you still need to show income, pay stubs and proof that you can pay them back.They still do appraisal for your place and will give up to 75/80% loan to value.The appraisal is just external of the area and not including the interior of your property.The process takes longer then mortgage So my appraisal came back and the value was 160k!!!

We do an external walk around, check the roof, foundation, windows, doors, siding, etc.

You have to with your own comfort levels and consider external factors.

You have to treat external economic factors as gravy because you cannot control them and you certainly cannot count on them.   

When I hand pick a property and bring it to a buyer they don't pass on it, because I took the time to know what they want from their investments.

I am not sure if I can post external links here but this should point you in the right direction.

I believe many of above mentioned external factors have exacerbated this cycle, but it's far different then 2006.

The problem is that, if they don't sell enough, like in Rich's case as a result of unpredictable external events, they will have to stop construction.I'm extremely risk averse and I will do anything to protect the interest and money from my investors.

As I was doing that the county restructured and property taxes went way up killing most of my profit on the ones I hadn't sold yet.So I would probably not try that again unless there were external forces I knew about that were already working to change the area.My suggestion would be to get very familiar with the local government and chamber of commerce in the area and see what is going on.

The risk is not external it is internal.