If you did, then I would include the missed interest payment in the figure that you provide for payoff.If you did not get binder, then your "friend" could theoretically collect the insurance money and not pay you a dime, then you would be forced to foreclose on the burnt building to try and recover the capital. 

A dime a dozen.

This way you don't get nickle and dimed by the contractor and bleed dry of your working capital before a single shovel has broken ground. 

Nickel and diming seems to be a strategy with PM's.   

If they file bankruptcy, depending on the chapter, they could be paid in full. if there is one dime in equity over the balance of the senior, they can't strip the lien and we aren't in the economy to where there wouldn't be equity above senior lien balance in most cases.

yup I googled them and they are a licensed consumer finance lender in OR WA CA NV  and they have a big warning on the front of their website saying if anyone is claiming to be with their company and ask for one dime up front to call the AG in Oregon and the AG in the state you live in and file a complaint.. 

There is a lot of work to be done on both purchases, and I don’t expect to see a dime from cash flow for a few years.

As you have seen opinions about what and where to invest are a dime a dozen.

After that year, we had two rental properties that each cashflowed $200 per month and we didn’t have a single dime of our own money invested.

Am I nickel and dime ?