Honestly the whole thing sounds sketchy but you mentioning lawsuits is a red flag.

But characterizing the timing of an ADU project as all funds due for more than a year is not accurate, even with modular construction where more is paid earlier.

When I listed it I adjusted the rent to be a little higher than the comparables in my area, because it was one of the nicer ones in the area but I can't seem to get a renter. over the last 26 days, I have had 46 inquiries and 14 applications, of those 14 applications about 5 of them passed the background check and credit history check. some of them I could not get ahold of their employer or landlord which was a red flag for me. 

Even though WE are NOT originating a loan here; it would be the EX-Husband who would be "originating" the Loan (by taking back the Deed of Trust and Note) in order to SELL his 50% interest in the house, the TIE IN is with our BUYING or INVESTING in the purchase of the DOT and Note to generate CASH to him, and CASH OUT to Her is wherethis becomes a "Gray Area" of whether it violates any of the CFPB Consumer Financial Protection Bureaus requirements and could be re-characterized as a high cost LOAN IN DISGUISE ALTERNATIVE THINKING We are thinking a better way to go here IF the EX-Wife agrees; it to SELL the house NOW, pay off the EX- Husband and enter into a 3 year LEASEBACK with the buyer of the home. 

I see red several flags "Guaranteed cashflow the first two years" often means "Negative cashflow after that.""

I was under the impression from working with a local LLC that uses private money loans from individuals to fund rehabbing projects who was recommended that nothing special was necessary, and the attorney who ran this through is fairly experienced, and though he said there are "a lot of moving parts" in this deal, he didn't red flag anything.So Curt (rehabber) owns a house outright.

What is the minimum interest rate we can charge for the seller financing without causing any red flag with the authorities?

They are wanting to move ASAP, which from my research is a red flag.

If they don’t - red flag. 3) Select the agent you believe you’ll be in the best hands with, and get pre-approved by their recommended lender.

Text message had bad grammar and white spaces - typical red flags of a spam. 1.