Reserves will not help you for long if you suffer a permanent loss of cash flow.

Make sure this is not his first total subdivision project.Make sure all the correct insurance, bonding etc. is in placeMake sure the end buyer is prequalified for a permanent mortgage and puts up a strong deposit.

I will note that pretty much ALL of the deals we finance are institutional-quality properties with exit strategies of either 1) refi via long-term, permanent takeout (life companies), or 2) sale / disposition to institutional investors.So as I individually attempt begin my personal investing career (currently in learning mode with capital ready to deploy), I understand that I can't just walk into a room full of sophisticated, savvy and experienced investors and announce that I'd like to participate in a "sure thing", ground-up 350-unit, class A apartment building in midtown ATL.

Stabilize and refi into a more permanent financing product in 12-18-24 months 

Another issue is that if I legalize the in-law, the property will be permanently under rent control.

Put out 40 bandit signs in high traffic areas at intersections 2 weekends and even left about 10 out there permanently and zero calls. 

I can't think of a single part of town where this would not be a more advantageous way to live, at very low life impact.The advantages of this are fairly immediate and last forever if you keep the property, and you can literally do this for a year or two, and use the rental income to then pay for the bigger nicer house you want to live in permanently or raise a family in.

The bank is telling me we can't put the permanent financing in our LLC name.

It seems as though the one that wants the lease is more permanent and another is less so.

If the mason doesn't know they're doing you'll end with permanent damage. 2.