These in reality are rare, they are not something for some newbie or even a 5 year operator to try to do as their main business in most markets, you will waste your time and starve trying to go elephant hunting.Getting stuck or even trying to start in one strategy is a big mistake, start with the basics, get a good foundation of conventional transactions, how retail works, from there you can begin to modify aspects of a situation to employ tactics that can make a deal.

Also throwing this in the discussion for any visitors who are looking for creative solutions-- Jim, if you get the note reperforming, you could hypothecate it by using it to collateralize a loan or just sell off a partial of the modified loan for a return of capital.

Single Room Occupancy (SRO) or PadSplit / CoLiving are able to make a ton of income, especially if you modify the house with a couple extra bedrooms. 

You may still have to deal with a lender for acquisition and construction and then modify your loan assuming your dealing with a local bank. 

The activity is essentially no longer subject to the passive activity rules, so even if your modified AGI exceeds $150,000, you can take the suspended losses in year of sale.

Some lenders modify their seasoning requirements according to how you bought the house.For example, if you bought the home with cash, then most lenders will require 6 months or even 1 year seasoning.On the other hand, if you bought the property via a loan (and thus went through a formal underwriting and appraisal process) then a few lenders offer as little as 90-days seasoning in such cases. 

I know as the Lender, I always have the option to modify things but the NoD helps set the stage if the borrower doesn't act or respond in a way I feel is beneficial to getting the project across the finish line and me my capital back.     

Proc. 2000-37, 2000-2 C.B. 308, modified by Rev.

How would the refinancing of the modified property work in the future?

Hi, I bought my first commercial NNN property in South Carolina in 2023. My husband and I own purchased with 2 friends. The 2 friends did not want to create an LLC with all 3 partners prior to purchasing because they ...