Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

Its a tough subject because logically, they are joint and several guarantys so rationally a 100% guaranty from each of two people (one 740 one 680 for example) is ALWAYS going to be better than just one 100% guaranty from someone at 740 (so it wouldn't make sense to have a better rate for the latter)The problem is that there is fraud and "straw borrowers" out there where someone who is not involved in the property signs on to boost score and terms - so many DSCR Lenders in response either do the "non-rational" thing and price to the lower to avoid the fraud or use the higher of the two (and either be a little loose with things or just stay vigilant on any funny business)

The settl4ement was private, but I bet it was at least $400k knowing the attorney's involved, maybe more. 

You don’t get involved personally.

We recently did a loan involving a borrower with a mind-numbing operating agreement involving nested LLCs, retirement plans, and individuals. 

In Mexico, that won't happen; you'll be shot if you get involved in the drug business, which most people won't do.

I'm struggling to find a good example that doesn't involve shared laundry.  

Now we only bring on high income W2, business owners, and investors who are specifically involved in real estate.

However, there are some drawbacks to putting a rental property in a trust - first setting up a trust can be expensive and involve a lot of paperwork, the rental property may be subject to rent control and liability insurance may be more expensive for a trust.

Recommend:1) Letting the tenant know they need to buy traps and use them.2) Waiting until S8 gets involved.