Hard Money Loans are generally speaking institutional money so they make the rules and you either like it and take it, or move on to another lender.

For BRRRR, focus on the 70% rule to build equity.

Know the rules, know the tenants, know how to get paid and know the repercussions.

If you do it right, it’s arguably the best market to invest.Purchase: $80k-$130kRent: $1100-$1500 (no rent control in MI)1% rule: .9%-1.4% rule dealsCoc ROI: 5-12%Total ROI: 20-40%Cash flow: $50-$250/door (after all expenses and budgeting for maint, capex, vacancy)Appreciation: 3-10%+ (has been double digit for a decade)Location: C+, B-These numbers are based on the “sweet spot” in Metro Detroit.

So I doubt whether I should sign, or it's a kind of rule that I have to sign if I work with agents to find the deals. 

Each area has its own rules on how it works, but basically, you buy the house, pay a deposit and agree to rehab the house within a certain amount of time.

It is just the IRS rules.

A 1%- and 2%- rule property is hugely better in California compared to Costa Rica because you can leverage in California and you can't in Costa Rica (notwithstanding the fact the risk is higher in Costa Rica too so you'd actually expect a higher return there).

I saw some properties today, only one of which I thought had potential, but an offer would have to be pretty low to hit the 70% rule which is the goal.

There are rules and situations unique to each state and that is why you want to go with a local lender vice someone just reaching out to you telling you they can do it. 2) Better recourse if the lender screws something up: a local lender has more skin in the game so to speak as if they screw something up their name will be mud to local real estate agents in the deal.