There are more serious red flags that come up during the screening process. 

The key is to zero in on one market and really dive deep into understanding it.

Jump in the deep end.

The fact they ask you to do this is not only a red flag for obvious reasons, but also because, they should know better how risky this is for you and if they had true good intentions they would have understood that and not offer you that option.What you can do is tell them..

I also have this same question about a Multifamily deal we have where we will need to purchase land before approvals.. you’d think being in this as deep as we are we’d know this answer but, it’s actually proven to be a pretty difficult thing for me to come across even with speaking to several people in the industry.. my own mother is 32 year lender.

I used AI to help me create an accelerated learning schedule and I believe financing deals is in another week or two out before I really start a deep dive into it but its been on my mind since the beginning of my journey.

It’s great to see another agent specializing in investment properties here, especially someone with a deep understanding of the Washington market.

On paper we were slightly in the red but much of that is due to one-year expenses/repairs & allowable transportation costs to get up to the property for work days ourselves. 

Even you got hung up on the HELOC red herring.

Any GC that does not work like this is a huge Red Flag and you should run away.2) Also any experienced GC should have theur own state-legal contract that spells out terms clearly and protects both of you.