Don't know what that means.6. 12.5% markup for reno/repairs...That's reasonable, yet, you need to have some mechanism in place for the bid process. 

Lots of things come immediately to mind:  Septic problems, a new roof, HVAC failure, lower-than-projected rents. 

Hello BP community,I have given termination of lease to end this month to a Sec 8 tenant who violated the lease with subleasing, damage, and failure to cure and repair damages est. $35,000.

Your borrower might not care anymore.Check for any recorded mechanics liens.

If you withhold now, and the tenant knows the law, you're setting yourself up for failure.

How is the roof, the mechanicals, water issues?

The irony is most investors who form LLC's do not operate them correctly, fail to obtain appropriate types or amounts of insurance coverage, fail to understand their coverage exclusions, take short cuts and don't obtain permits, use unlicensed and uninsured vendors,  fail to execute contracts with same vendors, don't understand the mechanism of additional insured status, indemnification etc. and are actually more prone to claims and conflict with their LLC than the individual who does not own real estate in an LLC but understands these tools I mentioned.

@Mike H.check out triple net leasing as to the mechanics of why almost 100% of hospitality and commercial properties are triple net leased.The main reason people NNN lease their property/s to businesses is because they want to own passive investments not actively manage another business.Very few if any investors manage the Hilton hotel property they own. 

He once told me that he didn't understand where my desire to work with my hands and become mechanically inclined came from.

Hey there, I'm avidly reading about wholesaling in Canada and I was wondering what are the mechanism in place to protect yourself as a the wholesaler if the buyer doesn't come through or if the deal falls off.