Note if you go over 4 units, your valuation will be based on NOI and comp rate.  

What is the compelling reason for them to pick you, with your competitive rates, over someone else they've already been using with competitive rates? 

My best guess is their failure rate is more than 98%.The truth is not as “convenient”.

Yeah, it is based on the state's regulators.

And you are looking at an interest rate around 7% instead of over 10%. 

I can buy down the interest rate.

They have had 100% occupancy at market rates and currently bring in around $2,000 per month in cash flow.

He will get around $3,100 tax free Base housing allowance and will have $150,000 he can put down.  

When the tax base disappears so do essential services.

Working with a private lender can indeed come with challenges, particularly regarding qualifications and funding structures.For your cosigner, they typically will need to be a member of your LLC and the private lender will want them to hold 51% - depending on lender of course.Compensating your cosigner fairly is based on what both parties believe is fair.