Borrower has the 3% loan in place for the duration, and 14% investor can be paid off with increased rent in say 18 months.  

De nada 😎I don't know that market at all (FYI, I don't see this is other Midwest markets where my CFO clients buy properties), but I suspect it's related to perhaps the international investors that agent may work with...they are often cash buyers as it's very difficult to borrow here if you're not a U.S. citizen.

Borrowing against securities is a high risk proposition.

The borrower gets the benefit of having access to capital fast and the lender gets the benefit of charging a higher interest rate and not having to pay taxes on the profit.

I literally laughed through the phone at his suggestion, because I was broke, in debt, and in every way and unqualified borrower, and the lending environment in 2012 was probably stricter than it had been since the invention of the 30yr mortgage.

I've seen some lenders place limits on the number of loans a borrower can hold, but most don't.

Reason I ask this is I believe a famous name doesn't necessarily mean the business is well-run, it also does not mean it is not well run.I have seen it from both sides where there are well run companies and We have a borrower who is pretty well known, was just seen on a red carpet, is a great sales and marketer, but is being sued by everyone and anyone because of defaults. 

I reach out to the original borrower and ask them what’s going on.

I continue making the underlying mortgage payment myself (autopay) and get reimbursed from the borrowers payment.

Mortgages for LLCs with personal credit under 680 are tough and expensive, and under 640 are typically not really economically practical for the borrower.