They also served him the papers in March- B sold the property to C (an LLC) on July 1, via a special deed- Late July, C sold to D (the wholesaler) who sold it to me - likely on the same day- September of 2024, the court decided in favor of Estate, B never replied.

That means:🚫 No posting on social media🚫 No blasting your deal to an email list of strangers🚫 No promoting your syndication on a podcastThe SEC is clear: “No general solicitation or advertising to market the securities.”If you want to publicly advertise, you’d need to use Rule 506(c)—which requires investor verification and limits you to accredited investors only.🚨 Warning: If you advertise a 506(b) deal publicly, your entire offering could be invalidated, leading to legal consequences.2.

Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

Now we're seeing investors pouring money into buying Class C rentals - but, many are getting burned.In our experience & opinion, the main determinant of property Class is not location or even property condition, those are #2 and #3.

The C areas can work but with laws becoming more and more tenant friendly mistakes will be costlier and the perceived cash flow will go down more than expected though way better than D. 

Now we're seeing investors pouring money into buying Class C rentals - but, many are getting burned.In our experience & opinion, the main determinant of property Class is not location or even property condition, those are #2 and #3.

YOU DO NOT NEED TO CARRY A BALANCE.One other issue to be aware of that greatly affects your scores - most modesl monitor:1) How much of each card's limit you are using2) How much of all combined limits you are usingThe higher your limits on both, the higher risk of you defaulting and the lower your score.RENTALSYou obviously bought Class C properties and were unprepared to deal with corresponding Class C tenants.Recommend you restart with ONE Class B rental this time and HouseHack - live in one bedroom and rent out the other bedrooms.

Did you start with a 506(b) or 506(c) exemption — and would you do it the same way again?

Buy a clean, bread‑and‑butter rental in a stable C to B neighborhood, verify real rents with a local PM, and budget for true costs like taxes, insurance, management, vacancy, and maintenance.

Quote from @Al Watts: @Roger Hobbes "Almost all Black homeownership in 1960 was concentrated in lower-graded (C/D) neighborhoods.