@Ana N Congratulations on this great milestone for getting a deal closed.Thanks for sharing your experience and your tips!

This option gives you lots of control.You can work in specific exit milestones into the contract.  

The LLC is also a good milestone. 

@Donald D Michna - While it's definitely a fun milestone to say you've paid off all your school loans, if you have subsidized undergraduate loans at less than 5%, keep them and auto-pay the minimum.

For instance, a plumber, carpenter, etc.When you get higher up on the ladder of your business, you then start to do things like manage your subordinates.Above Managers, you must then give reports on the progress of your department, milestone achievements, projections of revenues and income, etc.Above Managers, the CEO level, your vision decides the overall direction of your business.I believe every Investor needs to think of their investments a business and you are the CEO driving that business forward with your vision of the future.You should NOT be a specialist, you should be a Generalist that can gather information such as what is the future migration of people in your area, what is the city planning doing in terms of re-zoning, are there any large scale developments that can affect your business (ie... if you are a mom and pop retail store, Walmart will put you out of business), is there a recession on the horizon?

That is an awesome accomplishment and milestone!

I like it either hourly with incentives, or project based but with draws based on milestones, and penalties for not meeting them.  

Don't pay the contractor in advance.  25% down is acceptable with phased payments when specific milestones are hit protects you and encourages your contractor to keep on schedule.  

I am still not sure preliminary disclosure is recognized by TRIDMariusz If this is a non owner occupied loan, TRID doesn't apply; it's to cover milestones in their software.You're better off going elsewhere and not being bitter. 

Milestones, deadlines, failure to perform clauses, etc., are detailed in the OA.