Here is some key information:Property recently hit the market and has 2 cash offers alreadyThe seller provided a pre-inspection report, which I shared with 2 different lenders, both think it may fail conventional financing due to potential structural and electrical issues (realtor thinks it could pass conventional)Seller has 100% equity but is behind on other payments (not sure of the urgency money is needed)This is my first attempt at an “investment” property so I’m new to thisI see 3 optionsMove forward with an offer using conventional loan pre-qualification-Not as attractive of an offer to the seller-Possibility that appraiser calls out structural/electrical issues that need to be fixed before closing, effectively causing financing to fail- Best terms and fewest loan fees for meUse a rehab style loan such as ChoiceRenovation-Even less attractive than a conventional offer to seller, but less risk of failed financing if appraiser calls out issues-Slightly worse fees and interest rates compared to conventional-Lenders tell me possibly up to 60-90 days closing in some cases, with red-tape for contractor requirements and draw schedules (sounds like the most hoops to jump through during rehab)Use a hard money lender-Most attractive loan option I can give to seller so I can compete-Much higher fees and interest rate for me-need to refinance into a conventional at the end of rehab (not familiar with seasoning periods but I think this is a factor as well)Which option would you do?

On the other hand if they are a sponsor that is experienced in stopping a skin in the game, that's a huge red flag for me.c) how open to scrutiny are they?

Up front fees (outside of appraisal fees) are typically a red flag when dealing with a HML.

You are in a deep **** if they declare tenancy and eviction can be extremely painful.

I want to give them the benefit of the doubt they are just struggling with staffing but now have seen some red flags that lead me to believe there might also be some type of deceit/fraud and possible financial trouble.

3-Any red flag in our current structure?

I guess I was looking a little too deep into it. 

To me I'm not seeing this as clearly as those who are deep into the BRRRR philosophy.ELI5Also, the rehab part gets old after a while...rehab and maintenance never ends.

They are over 300 years old and have deep pockets which allows us to self fund all our build projects and get better deals and bulk pricing in materials and other services We can pass these savings on to our buyers.

Since then, I've documented the process as a Boutique Hotel investor and have a deep commitment to sharing my knowledge around Boutique Hotel Investing with others who are looking for a path to financial freedom, and Boutique Hotels is the best path to get there in my personal opinion.