The main point is to find a rate and terms that are win-win for both parties, and making sure that making the payments is top priority.Here's some additional information from our procedure manual, where I like to document research and learnings:Family LoanWithout a formal loan document (source: Nolo's Promissory Note for Personal Loan (Installment Payments With Interest), the IRS could argue that there was no loan at all - that the money you gave was really a gift.If you want to secure the loan with real estate, you need a mortgage or deed of trust.

It takes a significant number of units under management to generate a decent primary income.Check out NARPM and their educational offerings.Write a policy and procedures manual for your company.As @Curt Davis said, set limits at to what you will manage.

If you can't show that you can pay the loan back, making the loan based on collateral is a waste of time and potential risk since there are procedural errors that can cause collateral tied to a bad loan to improperly get released.  

What I did with his course was outlined the course then created S.O.P.s (Standard Operating Procedure) each SOP is a way or form/checklist to reference.

We just dont write many builders risk policies because it is not a fit for a buy and flip or a renovation property to rent because of the reporting procedures during construction and the extensive underwriting to get the policy started.

Is this the typical procedure for a seller accepting offers on a property?

Every state has a different procedure and that can vary some from county to county.

In Virginia, it was standard procedure to try to get you to sign a buyer agent agreement, but not required.

You might also want to look into modular houses, they skip the local permit procedures.

The fees involved with such a procedure requires an investment on the part of the beneficiary.