They are inherently riskier loans so it takes a baseline level of trust, or legal protections, to ensure that the Gap lender in question is protected because being in subordinate position on title means that if it gets sold for less (via bankruptcy or any number of proceedings), you are more likely to lose your money.You also need to make sure that your primary mortgage holder on the deal is okay with there being a Gap funder.

Unless you're still within your due diligence period, there is no contingency that you can enforce to back out of the deal and receive your earnest money deposit.

Would it be a good idea to take a deposit to secure the deal until the rule clears?

If you don’t like it, you can always pivot and sell, convert to a long-term rental, or move into another investment strategy with the equity and knowledge you’ve built.Starting this way means you’ll go through every key step: finding a deal, securing financing, managing tenants, and understanding property operations, but in the lowest-risk way possible.

The property owner contributing the land as equity takes it from a good deal if everything goes right to a real no-brainer. 

We like owner financing deals because we are great at negotiation and we can create win-win scenarios with shorter closing times.

Now, you need to figure out how to find deals and pay for them.

Are we possibly cutting ourselves short here with a deal of this nature?

Purchase price: $50,000 Cash invested: $50,000 My first investment was a three unit deal for $50,000 cash.

Until I am considering building cash flow with launch an ATM business then using that cash flow to invest into BRRRR deals and then BTR deals.