In the commercial mortgage space we have found that NPN investments can be divided between(1) purchasing NPNs in which we’ve had no or minimal contact with the borrower, and(2) purchasing NPNs in which we’ve worked out details of a restructuring with the borrower prior to purchasing the noteAlthough the following is in no way a scientific, statistically verifiable conclusion, here is what we’ve concluded through empirical evidence1 - purchase discounts from UPB do not differ either way2 - having borrower agreement before note purchase results in much greater chance of creating a reperforming note3 - having borrower agreement before note purchase results in much less chance of having to foreclose4 - having borrower agreement before note purchase results in borrower seeing us as an ally not as an enemyAside from 1 above, the results are exactly what you’d expect.

Verify that the contractors have a good track record and are licensed, bonded, and insured.

Verify any recommendations you get on here. ;-)

They are identical and each unit has 2 bds and 1 bath.

Look at what your monthly mortgage will be, and verify that once you complete the project market rents can support the loan. 

The leasing is a lot of work, advertising, showing the unit, running application and the credit/background reports, verifying the information, doing the lease signing, etc.The first month's rent does encompass everything to place a tenant we don't break out separate marketing fees, it's an all inclusive fee, the first month's rent.Negotiating is up to you and the PM, where the units are located, their condition and also what services are being offered. 

Having a verifiable rent history is not part of it, unless he absolutely reports none of it on his income taxes, and has to show it's really a rental.

Since you have purchased real estate before, you will notice it is nearly identical to the contract your realtor uses.I took the completed contract as well as the earnest money deposit to a title company who did the majority of the work.

However you need to check out the offering document for the details and verify what it is claiming. 

In either case, you should verify that you are eligible to transfer the funds from your existing retirement account (e.g. if the funds are in your current employer 401k, you will likely not be able to transfer until you quit your job).