I’m at a crossroads and defaulting to my PM.

LLCs are passthrough entities by default, so your LLC owned by you in your name will have income and expenses flow to you.

Typically it will cost a point but it’s better than hitting maturity and then have default interest kick in.

I'm also not too keen on a partial note as I feel my position in the repayment if a default occurred would risk me losing it all, since all lawyer fees etc get paid first!

I can totally see how a rookie, in the name of the podcast, could hear this and determine that defaulting is clearing the slate, offering an opportunity to save and start over in 2 years. 

It ensures that borrowers are purchasing properties that have the potential to cover their expenses with rental income, reducing the risk of default for both the borrower and the FHA.

@Ted Akers  got it.. since It was not my business model I just fast forwarded to your default position..I have a proctor insurance account so I can insure for monthly fee. so house was protected for the few days I owned it. 

Then a notice of default will go out providing 30 days to cure. 

So the only money a lender makes is the fees and origination.Civic should you what happens when lenders try to sit on their own notes - when the market slipped and their loans started defaulting they went under.Now, sometimes a broker has a corresponding lender agreement with a lender which means that all the broker fees are white labeled into the HUD and grouped with the lenders and now you can't tell what fees are the lenders and which are the brokers.

The early underwriting might be easier but then after that it boils down to if you pay there are no issuesPrivate money will not screw around typically if it’s ind default and move much quicker than a bank would