The absence of judgments, bankruptcies and Liens is a must- not only with this type of funding but in general when looking for money.

I had the same type of experience with another contractor and was thinking about going after him in court but decided not to because he had an Corporation and I was afraid he would file bankruptcy if i went after him.

We went through bankruptcy last yand. we have six months to hand over $17,000 as down payment for the $85,000 loan.  

Went under contract back in August, was tied up in Bankruptcy court and took a long time to close. 

I filed bankruptcy in 2014 and now I have $10,000 saved for my first rental property.

(bankruptcies, divorce etc.)

Few things are happening in 2018 which could impact:1) Fed will raise interest rates2) Fed will shrink its balance significantly 3) Lots of big retailer debt is coming due in 2018 and that will likely trigger bankruptcies and employment loss 4) Can the stock market grow?

Also over the next period of years flood insurance rates will rise yearly as the NFIP tries to stave off bankruptcy.

Plus, good luck using an unsecured note alone if the borrower declares bankruptcy and the BK trustee claws back the property.

Contracts won't do much if the person you are contracting with is fully leveraged and on the verge of bankruptcy.