Points and the Delta on the spread.. in those days I was borrowing on my LOC's for about 7 to 8% apr.. and lending at 20% apr..

I'd expect something in the 70%-75% range, depending on your experience and credit score3b) Also, do you need to borrow $160k?

I figure we have around 5M equity we can borrow against after 70% ltv and buying out the other member.

For those that qualify for conventional financing its another negotiation tool, for those that do not its a way to get into real estate but many do not understand what it is they are signing up for.Regarding it being good for an owner, again it goes back to the borrower, if I have a borrower with 800 credit and I control cashflow its far different than someone with 540 credit.

My question is, since we may not need to borrow anything to finance this, will the mortgage payment be affected? 

Will the mortgage holder sign off if the proceeds go to an LLC that isn't their borrower?

If the property appraises for $300k, you can borrow up to $300k.

If the borrower creditable?

Note origination where the borrower owns multiple properties with little or no debt, needs a loan for an acquisition, but can’t produce proof of income sufficient to get institutional financing.  

My thought is to structure a deal where we borrow her parents equity from them and pay them in monthly installments once we get the apartments rented.