Of course, at the end, he plugs a masterclass with more specialized small group training for $3000 (money-back guarantee if not satisfied).

The more junior sponsors are seeking more of the first two bullets; but fortunately you're also yield-seeking as a non-accredited investor so there is alignment.  

Quote from @Atif Khan: Hi, new here. i just finished building my first spec homes out in granbury tx and was looking to buy a few more lots around dfw metroplex.

The substitute of collateral was more of a scenario where you sold for $155K, and instead of paying off the $88K loan in your scenario, those funds stayed at the title company and were used on a cash purchase happening nearby in date. 

I would be much more specific on pricing.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

If you want a ballpark answer, you'll need to give a lot more details.

Im still clearing more than 1200 a month and he handled all the work.

Hope this helps!

help