-Marcus :lol: I am no attorney, but as long as you disclosed that your a licensed real estate agent to the seller prior to signing the contract and because your a principal in the transaction, you should be fine.As part of your signed disclosures, you should have the declaration your an agent.I agree with Nick...

In California there is a full disclosure law, any huge issue known to the seller that devalues a property in anyway is declared in the purchase agreement.  

I always ask the homeowner for a declaration page. 

Not having much experience, done deals or money sort of makes me hesitant to declare myself an actual 'Real Estate Investor'... although I suppose having Time and passion, determination to succeed are 'investable' resources that count just as much as Money.Yes, this post is broad in subject matter, but it sums up a few challenges I'm facing and I'm asking for help.

If the project violates that min DSCR, then you're somewhat at the mercy of the traditional lender.. will it declare a default and charge you the default rate until the DSCR is back in compliance or will it charge you some fee to waive the violation for that year or will it charge you a fee and increase your rate until back in compliance or will it go all the way to accelerate the loan and foreclosure.Traditional lenders will tell you that they're cash flow lenders, not collateral lenders. 

@Stephen Barton way to use the hustle muscles!  

If anyone has borrowed from a private lender as Will stated at above usary rates then they could declare all payments principal and if they wanted treble damages they would need to go to court.I had this happen way back when in my 20's someone lent me some money at 20% interest and we got in a spat...

In my area, it's hard to find a 'typical' operating budget because of differences in the development declarations.

I don't believe personal liability would stop at the umbrella limit if a judgment was declared against you for a higher amount.For me, the LLC is partly a psychological tool to help me treat land lording like a business, and partly asset protection.

Check for any 'pending' Federal designations as well.We had an investor pick up a large property that he began developing.Then 39 acres were declared wet lands 18 months after he started developing.Nice thing is the 39 acres sits directly behind my home :)