That was when all the red flags started coming.

I'm trying to plan this out as well as possible to avoid any issues down the road.I've seen the stories where people run into issues meeting this requirement and get scrutiny from the IRS, to me it seems the two biggest red flags might be when they hire a property manager and also when they rarely go out to the property to work on it themselves, always relying on contractors.

On the other hand if they are a sponsor that is experienced in stopping a skin in the game, that's a huge red flag for me.c) how open to scrutiny are they?

Applicants offering to pay a year of rent upfront is a red flag.

If they are under 600 we consider it a red flag but not an immediate denial.

@Jamie Parker we've got a lot of this already setup for investors in Detroit, so please PM us.Otherwise, the BP Moderators flag our posts for self-promotion:(

Bryan, it sounds like you're in a tough spot, and there are definitely some red flags here, especially with the property already being sold and the lack of communicationYou mentioned the borrower has many properties across states.

If a tenant is asking for rent reduction in normal times, then that's a red flag that you have to find a new tenant.

**Why A Half-Point Rate Cut May Signal Bad News**While many view the Federal Reserve's half-point rate reduction as a positive sign, I see potential red flags.

@Arn Cenedella The larger syndications that are raising their funds through smaller check writers is a red flag in my opinion.