If so… have I got a story for you ;)David, I think a lot of people who are not making a large income and do not have adequate savings are persuaded that they can get into real estate and, if they follow other people's best practices and "do things right," nothing really ugly, filthy, nasty, and disgusting will happen to them.In my experience, and the experience of many others, this is not true.I am NOT saying that real estate is not an effective way to change your financial status and climb the economic ladder of American society.

@Esian Henderson @Kenny Penn As stated above you should always have adequate reserves when doing Sub To and Wraps.

At the moment I feel the policy I put into place is adequate.

BP is great for active investors, but it doesn't adequately address the needs of passive syndication investors in my opinion. 

Unless rents are outpacing sales pretty dramatically, consistent 75% LTV may accelerate you into a DTI wall.There's not really a 'correct' answer for how much leverage is adequate...it depends on many factors specific to each individual/business.

If not, email me and I will send you what you are looking for and may be able to assist with drafting for those situations that the 6.1 does not adequately provide for. 

And what Account Closed says is true - if you don't have adequate reserves, you're in for trouble when something breaks.

But its a true asset based loan, no personal credit or income verification (only bank statements to show adequate reserves) and no DTI.

Since the tiny houses are up on trailers, it was hard to adequately protect the pipes, and they did freeze. 

Typically Construction insurance aka Builders Risk I am assuming you are referring to is adequate in some instances.