Here are some common pitfalls I see for new investors from the private lending perspective:• Insufficient Funds: most lenders are going to be able to lend a first-time investor somewhere around 75-80% of the purchase price of an existing property + 100% of your estimated rehab budget (or an 80/100 loan, for short).

Two days ago it was an investor who created an additional LLC independent of the deed holder entity believing tenants could only sue the LLC where a contractual relationship existed. 

If the amount paid to purchase an existing note is below the principal balance or more correctly, the unpaid balance, the investor will benefit from an early payoff to the tune of the discount.  

For your existing rental property, the net rental income from your Schedule E on your most recent return will be used in your DTI.

.- Our current preferred return is 12% a year, for a 3 year term (keep in mind these funds along with the notes that they purchase exist within a marketplace so returns fluctuate depending on the offering). - ACH payments are received by investors on the 1st of every month, so participation in our fund is a purely passive investment vehicle that's open to accredited investors only (and like Patrick said above, accredited or not, anyone can purchase a note).As an added bonus, investors in our fund can redeem shares to purchase notes upon availability. 

This way you can begin building your network (and even adding to your database of existing leads your current marketing campaign brings in). 

In general they will add the ADU only if it is existing living space such as workshop, bunk house, office, etc.  

Something to keep in mind though is that with the DSCR it is a new mortgage which entails higher closing costs as well as paying off any existing liens.

The purpose of my post was to make others aware of the difficulties associated with selling entry level SFH's which tend to be in neighborhoods with limited owner occupant participation and when the owner occupant participation exists the buyer pool are the least qualified of the FHA buyer pool.

If you are looking for loans on real estate or a business lenders don’t necessarily care about the credit history of the LLC - they care about the performance of the asset and your creditworthiness since you will most likely have to sign personally.I have established multiple LLCs just days before closing on large loans for different assets, those particular entities barely existed and the banks did not care.If you are talking about pulling a business line of credit (like a HELOC, but against your business equity) then the banks like to see some history of revenue.