If you are not licensed therefore cannot legally do anything other then DSCR you simply have not seen how it works in reality and how DSCR loans (on credit, not on credit or in an entity or not) effect the next full doc loan.

He signed the paperwork (as did you) and legally he's responsible for paying it.

You only see disappointment and complaints on the daily calls.

My only complaint with them was when the loan was repaid, the title company overpaid the interest due in settlement and 8 months later they still haven’t refunded or provided an explanation- the only response I get back is “that loan sounds familiar and is on my desk but the closing hasn’t been approved”. 8 months later I don’t buy it...Experience 3: Lending one - refi on the house for a long term rental.

@Anthony Pollachioli THis is not a lender question, this is a legal question for a lawyer.

I recommend a simple spreadsheet to check your math and it will make it simple to adjust each year.End the complaints.

But I do wonder about the legal consequences of it.

Lots of legal opinions here, but most are inaccurate.It is true that, absent an estate planning vehicle (trust, etc.) there needs to be someone with “standing” who is empowered to pass title. 

I see you mention having an LLC, so I'll share my generic advice on that topic.An LLC is useful for two things: anonymity and legal protection.

You're not a hard money lender (unless you are actually/legally one, then if you are I appologize).