if there is no equity then it just becomes do they want to save the deal or walk. it also protects the original borrower who has a loan in their name by having a beneficial interest in a mortgage DT recorded on the property..

Set up an LLC in the property’s state for liability protection, and consider a parent LLC if needed.

A FHA 203k Loan is where the purchase price and rehab costs are rolled into a single loan.Assuming you have a respectable FICO you can buy, with a FHA Loan (3-5% down, a 30 year amortization schedule, and a residential loan rate) AND because you closed personally, you will not have Asset Protection, in the form of closing in the name of a LLC/ LLC taxed as an S Corp, or an S Corp.

Not only will this lead to you being alerted if the policy lapses, but if their pet bites someone it may protect you from a resulting lawsuit.4) Unathorized Pet- Check your lease and state laws to see if you can terminate the lease over this.

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

The LLC is there to protect you from liability when doing business by SEPARATING your business from your personal.

You may find that you are looking at the wrong properties...or that you are looking at the right ones...or you switch strategies. 

This provides you protection and gives the lender a clear exit strategy,.

Also assuming your practice is going well, consider talking to asset protection attorneys.

If it’s in an LLCs name it s protected if maintained correctly.