my last post on this subject.I ran into a small company  6 folks involved  boy friend girl friends  they read rich dad book then went to a guru presentation and learned about wrapping notes which of course is the bizz model your talking about.

However I am struggling to understand and evaluate the risks involved with cash out refinancing 2-5 years down the line.

Personally, after working with numerous property managers in Las Vegas, I only trust two to handle this task for my properties.Compliance Is ComplicatedProperty management involves navigating a maze of city, state, and federal regulations.

Most value adds involve work   Some require specialized knowledge.Here is a list of why adding ADUs in my CA market is typically a poor RE investment:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

You have to purchase at least as much as your net sale and use all of your net cash.If the scenario involved a $450K sale. 

So for example, let's say a friend of mine wants to get involved in real estate but doesn't have the time, knowledge, experience, or resources to do it very well.

I don’t want much if any involvement because I’ll be doing other things.  

Closing CostsMake sure you also budget for closing costs, which are a collection of fees and payments made to the various parties involved in your transaction.

Processes have been set up to provide a degree of protection to parties  involved in subject to transactions.  

So the one's on the sidelines that did not get involved, and or are not coming from a position of strength--- now no longer can invest.