A tenant complaining online might indicate that the property manager handled them appropriately, so be sure to ask the manager for their side of the story.7.

Not just STRs.That's why if you've been through the trenches of defending yourself you wouldn't just mock the liability angles of protecting your investments beyond umbrella insurance, you'd know how to form entities and keep things separated appropriately.

I am trying to figure out that I have an appropriate insurance to cover the property. 

It depends on so many different factors.Income approach: I think this would be most appropriate for this situation.

I’ve always believed that if the lender is a “partner” sharing exposure and not an at cost money provider dividing the profit of the deal into three sections is appropriate   MoneyMarketingManagement This said it’s not unreasonable to allow a minimum return after “X” profit.  

First off, make sure you are communicating appropriately with the tenant.

Hi Arya,To appropriately model this, in my opinion I would add a minimum of 10% vacancy due to the commercial nature of the building.

A more appropriate post would relate to raising money to buy real estate and not be so short sighted and focus solely on the meager amount of money it takes to put a property under contract.

I guess the follow up question that a lot of people have hinted at is what should the appropriate pay structure be?

I make sure (1) the borrower has a 10-20% (or more) down payment of his OWN capital invested (2) I understand time value of money and use a realistic and appropriate interest rate to determine the actual value of the note I’m holding and (3) obtain a personal guarantee unless the entity purchasing the property has financial strength in its own right (4) the lien I hold is in 1st position.