So essentially you’re saving on capital gains, but getting lower returns for that capability.

I am sure many are actually purchasing real estate with these unsecured loans but the investors are not really benefiting from the real estate, they are merely making a fixed return and providing inexpensive equity sources to those who actually own the real estate.

But... what I need to review is how this is achieved as I would benefit from building the new unit as an ADU.

And you would get to indefinitely defer all tax on the gain from the sale.

It will familiarize you with the basic terminology and benefits.

I used to cold call, skip trace, send mailers, and don't get me wrong you will get success from it like James above, however as you gain experience you will realize you need deals faster, easier, cheaper, and with more "meat on the bones" and in order to have that you need constant deals flowing through your eco system and that's hard to do with mailers, cold calls, VA's and skip tracing etc.

It solves the problem of expensive housing, makes the employees available if the business needs them at any time (with overtime benefits) and eliminates the commute. 

I’ve been working with several lenders for DSCR loans, but I’ve found that the fees are quite high, with minimal benefit in terms of lowering my current interest rate.

If it's worth $1.3 million today, it will be worth $3 million or more in 20 years, you'll have paid off the debt (or most of it), you'll earn at least $3 million in cash flow over those 20 years, and you'll have tax benefits.

You have to weigh the benefit of the insurance claim payment versus potentially having your carrier cancel you and perhaps get black-balled by the insurance industry.