Same situation as above but mortgage fund lends the defaulting borrower money on a second lien to make payments on the first.6.

Quote from @Martin Jones: YouTube gurus will tell you to borrow money from someone else, but that's bad advice for a beginner.

Financing a Multifamily (5+ units) project for a 0 experience borrower will be just about impossible to find. 

Roll them all up and the averages are:purchase $154krenovate $47Ksell $232kThese are gross numbers, not including closing costs, borrowing costs, holding costs, licensing and permit costs, G&A, overhead, commissions, forward rate buy-downs, and lease-up fees, to name a few of the many expenses incurred. 

Raising capital - It will be difficult to tell an investor their $ is tied up for 30 years and you are only banking on the borrower selling or refinancing.

As a investment property lender we saw a lot of success with flips but an even bigger jump in BRRRR success with borrowers holding as long term and short term rentals. 

If you conclude the leverage is so good that everyone comes out ahead that's fine but if you are only able to originate hard money debt that may be viewed as a red flag by investors who will question your experience and borrowing strength.

The key is if someone is lending from a SDIRA to leave reserves in case the borrower defaults.  

to simplify, here's what i would do: don't borrow private money, or partner, until you have a track record. 

Buying with cash is much better in my opinion.Especially for our market.Most investors only use leverage because they "can".There is usually no strategy behind using the leverage.Our price points are so low that most investors just prefer to buy with cash.The price of one of our properties is pretty much a downpayment for any other property in other markets that aren't in the Midwest.Cash deals always offer a much higher return than leverage.Leverage is a risky game for beginners.Learn what you are doing first before borrowing money.Just my opinion for a path that has proved to work for me and our investors.Thanks and happy holidays.