using this form of financing is a great way to acquire/fix a property but if you are looking to hold long term you would want to find long term financing. 

I question if they get kick backs or actually hold ownership in this company.

As you look to scale, just make sure to hold/build reserves for when repairs come up and take your time screening tenants as you will find a vacant unit is much less stressful than dealing with a bad tenant.

It is a set price that you are going to get for it and if the deal makes sense with an 8% profit vs ARV (80% for purchase, 7% for realtor and closing costs, and 5% holding costs), it will be a good deal for you.Account Closed You are 100% right.

As noted I drank the cool aid on the high return higher risk and for me was not what I wanted .. now all we have is a few top shelf and I like that no calls values hold exit is real etc etc..

I wouldn’t want to hold the loan for too long, so ideally it would be a 5 year term, presumably ballon payment at the end.

Since you're using hard money for your fix-and-flip, make sure you also have reserves for holding costs and unexpected expenses.

Our bank will let us use equity that exceeds 25% across multiple properties that are either owned free and clear or where they hold the first so long as the deal still cash flows with however much cash is brought to the table.

*Renovation Costs – Includes labor, materials, permits, and unexpected repairs*Holding Costs — Utilities, property taxes, and financing costs during the renovation time.

Your 1031 QI would have to buy/hold the land and do all the construction BEFORE you owned it.