Following this discovery, he promptly contacted his attorney to dissolve the LLC.Additional Questionable Entities:Dogwood Capital InvestmentsM&M Capital Finance LLCKey Takeaways:Conduct Thorough Research: Always verify a company's registration with state and local authorities.Scrutinize Documentation: Examine identification and corporate documents closely for inconsistencies.Verify Contact Information: Ensure that all provided phone numbers and addresses are legitimate and connected to the entity.Be Cautious with Payment: Avoid wiring funds without extensive verification of the recipient's identity and legitimacy.While the majority of direct and private lenders operate ethically, even a single fraudulent interaction can damage your reputation and finances.

Is this unheard of when purchasing a property remotely with a less than reliable management company?

Given that the property was worth $390K in its current condition, I saw an opportunity to make the numbers work while keeping my upfront costs low.Instead of increasing my cash offer, I negotiated a $25K down payment with the seller carrying the balance for two years through owner financing.

These are typically interest only and require a payment of 1-4 points up front depending on your area and the PML.

That means that my payments are what they would be on a 30 year loan.

Here's the challenge: If the numbers work with a low down payment, why wouldn't an investor putting 20%-30% just buy it and could likely offer more?

However, if they are still considered a short-term guest under lodging rules, you may have more flexibility, though the specifics can depend on local regulations in Seattle.Since this can become a legal gray area, I recommend documenting all agreements, payments, and communication with the guest.

But then I am still stuck with the monthly payment of $180 a month. 

After 6 months of non-payment, we were able to perform an eviction for this tenant.

Our program only requires a small 10% down payment on the purchase price and we will fund 100% of your rehab costs.