Sure, in theory, the strategy this investor used might sound clever, but it’s also incredibly risky to rely solely on the compliance of a borrower—especially when they might not fully understand the terms or simply can't agree due to their personal situation.I have tons of ideas that might look good on paper, but I don’t pursue them because I assess the real risks involved.

A turn-key purchase is typically an easier and less risky strategy , but the benefits are less than buying a flip / brrr. 

They are the classic bad syndication company that makes risky investments with bad financing structures.

They are the classic bad syndication company that makes risky investments with bad financing structures.

While I agree with what Noah shared about the individual with millions in the bank being able to make the $10K risky investment without a poor outcome impacting them, the capital raisers are not going to the investors with millions in the bank.

They are the classic bad syndication company that makes risky investments with bad financing structures.

They are the classic bad syndication company that makes risky investments with bad financing structures.

Now, your capital risk is on the lease, not purchase. 

This situation is risky, but you can mitigate it by requiring a higher deposit or paying them several months in advance.My policy is that they must show at least three months of employment.

I believe there’s a middle ground to be found, and I remain hopeful for the next three to five years.Has anyone heard from friends, family, or fellow investors expressing concerns that Florida is becoming a risky place, causing them to shy away from buying?