Be sure to check local rules and your building's status before proceeding to avoid fines or penalties.

For long-term rental (LTR) investors, an ideal private loan would offer competitive interest rates, reasonable fees, and flexibility on terms such as prepayment penalties.

Rent kept coming later and later in the month so I reached out to connect with her and shared the expectation that starting the month after next I expected rent in accordance with the lease or I would begin enforcing late penalties.

After late fees, penalties, $80k for realtors, transfer costs, etc etc.

Do not screw this up, the liability penalties would be huge since you're dealing with fire.

The less conservative is: operate as a finder or co-GP but with very good, conservative counsel to keep everyone in the clear.I recommend you read up on "disgorgement penalties", and make sure the sponsors that are recruiting you have done the same, before jumping into this co-GP/Finder ship.

There'll be a prepayment penalty but I can always refinance a few years down the line, depending if I need more cash. 

We would bring in compensation to make it worth it too him and he seems to be open to the idea as long as we can figure out a way to do it without too much penalty on his side.

Otherwise a simple $50 late fee penalty in the lease should cure you of this issue @Phil Shelton

If you go this route, then I recommend you notify them well in advance (90+ days) and offer them the option of moving out early without penalty.