It is taxed at rates capped at 25%, as opposed to ordinary rates - a subtle but very important distinction.

Just to point out a subtle issue.If you are only paying interest, you might think it is a loan and therefore the securities regulations do not apply.

This is subtle but it helps maintain that it's still a charge at x price, the credit is my money towards the deal...no free money.

If they don’t like they flavor of the cake they’re gone two days later.

@April CengThere are lots of programs out there of different types and flavors.   

I think her own family member said it best this is a business treat it as such, that was a subtle warning that you are setting yourself up for trouble.

To give a little more color on the 506b vs 506c question, that choice will be more about your ability to raise capital, the right flavor of capital to fit your deal, your track record, and how you are viewed as a sponsor, than it is about the ability to publicly solicit.

Choose your flavor.

Adding fencing is almost never a bad idea, for the obvious reasons and the subtle ones regardign how prospective customers view the security.  

Throughout the next 13 years they lived there and kept making subtle and some major improvements to the house, with me lending some sweat equity when I could.