Donald on BiggerPockets, we're not politicians here.I happened to be of the opinion that interest earned by professional private lenders or hard money lenders is ordinary income for their lending businesses (as in "in the business of lending money"), as distinct from portfolio income on passive investments and casual loans.Eamonn - please correct me if I'm wrong and explain how would you classify the income and expenses of a HM lender, let's say operating as a partnership. 

What cost segment are you looking at building in?  

., all have very distinct issues that need to be addresses and resolved if the underlying investors want to go separate directions with different goals and objectives in the future (such as a 1031 Exchange). 

I would make the distinction between a high crime area and an area that has been abandoned with row after row of abandoned properties slated for demolition however both would have challenges to an investor.

Because Texas with its distinctive culture and its size, is a very influential state in the country n it tilts to the right n liberals don’t like competition, so they would love to have Texas go the way of NY and CA, they would love other states too but Texas is the big prize.

Do investors segment themselves into categories such as 2 flats only or single family only, etc . . . and then a specific city or neighborhood?  

If this has inspired anyone to look further into the program, there's one more important distinction between the two programs: ease of recruiting tenants.

In the other half, escrow and title are distinct.

We did this throughout the house.Ultimately I think there's an audience for houses that are not log cabins, and it's a segment under represented in the area.I believe execution and design are the key.

Worst seller segment - filled with people with no equity, no drive to solve their problems, etc. etc.Watch this 10-minute video from Phil Pustejovsky - "Is Buying a Foreclosure a Good Idea?"