If you purchase a note with an inadequate file or with trailing items, you need to make sure you have the proper provisions in your contract to deal with a failed delivery of those items.Second, this is a common tactic that I have seen now in several of files coming from certain promoters through our clients.

However, he just switched jobs (got a promoted position) and is having a hard time getting financing.

No, that was a delusion being promoted, for about 10 minutes..The theory was if was no active foreclosure in place at any point 5 years after one began they couldn't foreclose, but the lien would remain.  

Yes, people are trying to defy them by promoting trust transfers or such like, but... 

The brutal truth is that almost everyone has an agenda and majority of the time that agenda is to help you grow your knowledge base and to possibly promote a product or service.

With projects in this price range, I've used 0% promotional rate credit cards to help with cash purchase & rehab.

If you do not have your NOA for 2015 yet, then bring a copy of your T1;If you have investments, including registered accounts where you are the beneficiary, bring recent account statements;Bank statements showing your account balances for the past 2-3 months;If you have recently changed jobs, or received a promotion/pay increase, include 2-3 months of pay stubs and/or a confirmation of income letter from your employer (on their letterhead).If you have any debt - student loans, auto loan, credit cards, LoC, etc. - include recent (last 2-3 months) statements for each.If you have any court ordered payments -such as child support or restitution - bring a copy of the order and recent receipts;If the property you are purchasing is a residential rental property (1 - 4 units), bring copies of leases - or Estoppels - for all presently rented units.  

My thoughts on this would be to have a general investment theme put together / business plan and having a conversations but no specific deal to offer because you definitely want to ensure you are not running afoul of investment regulations / securities promotion / solicitation.  

Secondly, the fact that anyone is promoting that high of an LTV is another huge red flag since that's simply unheard of.

. $200,000 NOI($2MM loan @ 4% on 25 year amortization schedule)–126,680.88 debt service (PI)73,319.12 initial cash return200,000 NOI−79,134.6 interest payments–77,272.72 depreciation expense on 85% of purchase price (cost basis would be more accurate, but don't specify other expenses that would go into basis, like closing costs or improvements before you put it into service)43,592.68 taxable income35% tax rate used in your example15,257 tax due73,319 cash return–15,257 tax due58,062 after-tax return11.6% cash on cash returnA very nice return, indeed, but less than half of what you're promoting.