In the case of the latter, they may not be sophisticated enough to ask all the right questions.Run your numbers and be very sure that if you were the lender, that you would lend money to you.

I would much prefer to not work with the big banks and in my experience sometimes local lenders are not very sophisticated when it comes to non-cookie cutter conventional residential lending.For instance I recently worked with a local NC lender on a subdivision and construction loan which incurred unnecessary delays and thousands in additional expense, not due to the economics of the deal, but rather the bank's ignorance of the law and considerations that arise in subdivision/recombination of a plat.Go forward I would much prefer to work with lenders who are well versed in dealing with REI and avoid paying for the bank's learning curve and oversights.

I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.BRRRR is a pretty sophisticated strategy.

Another thing that I would do if I was not licensed would be put together a decently written LOI that can be fill in the blanks and just shoot them off to the listing agents.. shows sophistication and can be done in 2 minutes.. but the reality is re trading on these beat up houses is how we get our deals.

Rentals are easier - 99.99% of the time you should avoid corporations (C or S).However, profits from flips are subject to self-employment tax in addition to ordinary income tax.Depending on your situation, an S Corp could benefit you but you have to weigh the costs (separate tax filings, payroll costs, possible reduction or loss of Sec. 199A deduction, possible higher annual fees/taxes, etc.) vs. the benefit (avoidance of self-employment taxes on a portion of your profits).My advice would be to consult with a tax professional and attorney first to ensure you're setting yourself up correctly from the beginning.

Investors (especially sophisticated multi-family investors) are settling for lower cap rates and those awesome deals at 70% ARV are just harder to come by - especially on the MLS.

.), sophisticated real estate investors are continuing to utilize DSCR loan options after maxing out on conventional financing options or simply finding it’s not worth trading the time and hassle of a bank qualification for the slightly lower rates.The previous article outlined the basics of how to best position yourself as a DSCR loan borrower to get the best rates and terms on your DSCR loans.

The larger the property the more likely the seller is sophisticated and will want to get the most exposure to the market IE: a broker.  

But it seems to still be the best way to get to people who haven't listed their homes (unless you get pretty sophisticated with Social Media.

Any wise lender, be they a sophisticated San Francisco Hard Money Lender backed by a billion dollar hedge fund, or your relative, should confirm your ability to repay the loan.