Structuring a 203(k) loan for your partnership involves some creative thinking, but it’s definitely worth exploring.

If they are legit and you don’t have any other offers then I’d have the conversation with them but I’d want a higher than normal down payment (ideally 50% or at least more than the normal 20%), a higher than normal interest rate (at least a point above the prevailing rate so like 9-10% right now, but you can structure it as interest-only payments so their monthly payment is still lower than conventional), amortized over 30 but with a balloon in 3-5 years, something like that.

The book is useful for understanding how to structure deals, assess risks, and think like a lender, rather than just an investor.Pair this with engaging in forums like this one and attending local meetups to put what you learn into practice.

Structurally it’s in very good shape.

They need analyze  the property, the deal structure, and the sponsor. 

It is my primary method of investing.If structured and closed correctly, they work. 

How do you typically find your lenders, and what’s worked best for structuring deals?

If your goal is less required documentation, DSCR is likely your best bet as most everyone as mentioned, possibly a bank statement program depending on your job structure. 

They are structured via 506b so they are not allowed to market publicly (and only through referrals).

Caused by the seller can still be attached to the property, the buyer doesn’t get to keep the sellers interest rate when they execute the lease option, they have to pay full closing costs and get the new rate, etc. so it’s apples to oranges compared to a subto structure).