I gotta ask if you just made this up as an example or was your post based on a true lending story.I mean, I am a meat head body builder, and sometimes a bit slow on the uptake, but are people really that ignorant about how loans work?

No. 90-012] (6) Dwelling units which are certified by the Director of the Department of Community Development or his designee as part of the City's neighborhood preservation or rehabilitation program within the City's innovative grant program or as being in accordance with an agreement, determined by the Director or his designee to have been voluntarily arrived at, between the landlord or his duly authorized representative and a tenant or tenants occupying premises of the landlord, which agreement shall be certified by the Director of the Department of Community Development or his designee to be in accordance with the interests directed to be served by the governing body in § 381-1E of this chapter

The standard real estate closing/title attorney is not who you want giving you advice and preparing your lending documentation.Standard documents for residential lending include: note, mortgage, statement of business purpose (to ensure no owner-occupants borrowers, which would be a regulatory minefield), assignment of rents, and potentially a separate escrow agreement governing the title company's release of rehab funds as work progresses.In an effort to avoid protracted foreclosure proceedings in a default scenario, lenders attempt to do various things contractually on the front end: sign and hold in escrow a provisional deed-in-lieu agreement (may not be enforceable if push comes to shove), or use a cognovit note that permits an expedited foreclosure process (only available in certain states).

You'll find that gurus generally stick to equity financing transactions as cash lenders usually have attorneys and mortgage types available to them.I've threatened to write a financing book, the problem is that financing is very involved, it's another industry full of regulatory issues, prudent practices, various applications and concepts, so no book will do it, it would take volumes to give instruction and by the time you read something, there can be changes.However, don't give up on lending.

Body Cameras?

No body could afford to hire guys and contract a job for that price.

They should just be glad they have a live body in front of them talking about buying the property.

In most cases, it will be trivial for the creditor to get a charging order against the LLC and take your assets anyway.So if we agree that the main advantage is personal liability protection, then you should make sure to maintain proper corporate form (see here: http://www.insidecounsel.com/2012/01/11/regulatory...).You will notice that one of the bullet points in maintaining proper corporate form is:Maintain separate accounting records and bank accounts, and avoid comingling funds with its ownerFor this reason, it is always good to have complete asset separation between your personal and business funds.

It is advisable to do your due diligence and ask about such things as how long have they been in business, are alternative assets their sole focus, are they BBB accredited and rated, and most importantly, are they a regulated financial institution and have they ever been sanctioned by any regulatory bodies.  

Lonnie deals were abusive, and we are well rid of them.So frankly, we deserved to have the regulatory boom lowered on us.