It's interesting what people will do in acts of desparation.In my experience, lenders (specifically private lenders) will do what they can to work with a borrower to avoid foreclosure, which is a costly endeavor for the lender and requires time to process, usually months and months, depending on your state.Also, while an LLC is often considered a safeguard to protect personal assets, a lender using an LLC for multiple loans may have a substantial value to their LLC, which could all be at risk.Finally, if the wrongful foreclosure suit is legitimate and based on an error by the lender themselves, an attorney could logically sue both the LLC and the individual.

It is important to obtain insurance that will adequately safeguard your property and renters in addition to fulfilling the criteria of your lender.

Nobody will know why unless you'll face something later: property tax increase, some assessments they knew but didn't disclosure....or it might be something totally related only to their business - like the private loan must be paid off till next year and they didn't have money, and there might be huge penalties for that.I did disclose some "sensitive info" about my clients only when they insisted to and even then, if I feel it will hurt our sale, I specifically asked them to keep the silence.

Making a greater down payment will help you create equity more quickly and safeguard your investment in case market swings occur if property prices are rising quickly.In the end, the choice is based on your unique financial circumstances and investing goals.

Of course, this is an excuse.We only lend to flippers, and only in southern California, so this is a particularly sensitive topic and something I think about frequently.

Thanks….I moved in to a new town in 2006… and I immediately joined the local REIAs…And the communication / email process of one had me baffled…. although there was a “ bulletin board” ..all comments were delayed a day or two before getting posted… I asked “ why the delay” and it was explained that all posts are vetted to make sure that they complied…blablabla…I called bull… by saying that …in my previous REIAs if you ran afoul of the rules there was a warning and a three strikes and you’re out system… but a sometimes deals a very time sensitive… getting the flip out to the whole group SWIFTLY was very important….

The small caucus that gathered at our inaugural annual conference shared ideas to bring the profession into the mainstream and safeguard its position in the larger finance market.Perhaps the most crucial idea to come out of that conference was the need for a new term to define their vision for the industry and its future: not “hard money” and “hard money lenders” but “private money” and “private lenders.”

Obviously some of these things are area sensitive. 

Additionally, while it's not uncommon for syndicators to have affiliations with related businesses such as construction companies, proper disclosure and management of potential conflicts of interest are essential to safeguard investors' interests.Investing in syndications does involve a level of trust in the syndicator's expertise and integrity.

Of course you should safe guard your credit but 5 pulls is equal to 1 pull in a 45 day period.