Again you enver have to accept it but it means you will offer it (ie. review it).This is standard for most investors to offer this.

Quote from @Steven Stanimirovic: Hi Rich,The prepayment penalties you’ve encountered are quite standard with DSCR loans, as lenders often structure these penalties (commonly called "step-down prepayment penalties") to offset the risk of early loan payoff.

This allows you to buy using a LO, but you don't have to sell to the tenant, which allows you to have a standard tenant in place. 

.: Hi All,Is there any way to structure a private lending arrangement so that income is considered passive (by IRS standards) and can offset accumulated schedule E losses?

I understand that placement fee if one month is often standard for PM companies, but usually a lot of work and effort goes into placing a tenant.

Take the year to do powerful renovations like the kitchen, adding bedrooms and bathrooms and updating what needs updating (up to the standards of the other renovated homes in the area).

@Karl Kauper with a SF you can require the tenant to take care of lawn and snow, but they might not be up to your standards. 

If you're seeing a charge, shoot me a direct message with the email on your account and I'll be sure to help out :)Also, although our official refund policy is consistent with the industry standard of not refunding after purchase, we actually do often break that policy as long as someone reaches out the same day.

@Kendric BufordRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

It’s a good idea to confirm you have a path to record title in a way that’s financeable, even though this isn’t a standard fee-simple sale.The big question is whether it’s reasonable to pay a market-rate price when you’re not actually scooping up the land.