Here are some general guidelines: Lien Position1st Position LienEquityMinimum Down Payment of 20-25% (a 30% equity to sale price is preferred)Down Payment made in certified funds and not borrowedMaximum Funding of 70% ITV (Investment to Value)SeasoningMinimum of two monthly payments already made12 months or more preferredPayer CreditCredit Score of 650 or higherNo major derogatory trade lines (No 90-180+ days delinquent, foreclosure, repossession, bankruptcy, etc.)No decline in credit since purchase of businessTermsPrefer 60 months or lessMaximum of 72 monthsNo Balloon Payment preferredCash FlowBusiness has positive cash flow1.25 debt service coverage ratio preferred.DocumentationPersonal guarantee from a creditworthy individualStandard documents including Note, Security Agreement, and UCC-1 filing.Tax Returns on the business that substantiate profit and loss statements.OtherPayment history current and verifiablePayer Interview indicating buyer is satisfied with business and comfortable making paymentsMotivation for selling the note is not a result of a deteriorating businessConsideration of high risk businesses or geographic areasIn these situations, sometimes a partial is a better option. 

@Chad Chase - I think funding a fix and flip with a HELOC from a primary house could work.

I personally don’t see LP syndication investors as Real Estate investors.  

I'm going to ask for either a $50,000 downpayment or a source of funds letter from your lender to cover this amount.8. 

We lost multiple houses from the 'investment' company not providing the funding letter.

I’ve been coaching new investors for a while and many lack funds to get started but find both the lack of knowledge, experience, and funds, often derails them. 

In the case of investors, they still require a 20% down payment, additionally there is a 2.25% funding fee because the REO was purchased under a VA loan. 

It’s a beautiful old house and would be a real gem if it was restored, but I don’t have the funds or a credit score good enough to get a loan that big (without an insane amount of interest tacked on).I’m hoping to turn someone on to it who loves restoring old properties, or start investing in a group that does and tell them about my house and invest as a team.

For funding, explore options like FHA loans, personal savings, or creative financing, and focus on New Jersey markets that align with your goals, such as Newark for rentals or commuter towns for house hacking.

@Marc Zak Using an LLC for each property provides strong liability protection by isolating risks to individual assets, with income and expenses flowing through to your personal taxes on Schedule E.