Will you have a big hand in design and layout or are you contracting it all out and letting them use their best judgement? 

(Judgement payoff is for 210,000) I have never had to seek hard money or private lending before.

You'll first want to understand all the expenses you'll face with the zoning/permitting/code issues before making any judgements about the value of the property.Good luck out there!

So far, if everything just went to crap, it looks like the worst potential situation (barring unusual circumstances) would be a foreclosure on the credit and I assume a judgement for any monies the HML could not recover from liquidating the forclosed property.I am not saying this is common place, but I spoke earlier today with a real estate agent that works with investors and recommends an HML.

If you seek a judgement, name both of them.

@Luka Milicevic yes as long as they don’t have outstanding judgements for unpaid rents and pass your other qualification parameters.

Use your judgement. 

One Memphis RE professional confessed to me recently that 9 out of 10 tenants have a lousy credit history, or have at least one court judgement against them.

Just have to make a judgement call based off of how you perceive the macroeconomic climate, and then try to be the best individual investor you can be.

@Nathan Killebrew "Good judgement comes from experience.