Don't forget to have at least 3 to 6 months emergency reserves for your own protection from unforeseen personal expenses...medical, car repairs, unemployment, etc. 

@Warren Kong@Greg SoonThat all depends on your experience level and how comfortable you are with understanding the contract and knowing what a contract should include to protect you.

Send them a text informing them you are changing the locks to protect the property (not knowing who has keys).

I know there are companies who do both but we have found our niche in long-term residential and that is where our expertise is.

Would this compromise whatever liability protection does exist with the LLC?

This way, there is no sense that you have to 'protect' your investor network from communication and knowledge of the sponsor.

Often you have the choice of being in a protected first lien position for 8% return or an exposed 2nd or 3rd position for, say, 10-15% return.Remember, you can always buy a tax-free CA municipal bond - the most boring and stable investment possible, pretty much - and get a 4% return while paying zero tax. 

You basically paid the flipper for the expertise and you learn in the real world.2.

Personally, I also maintain a certain level of leverage for asset protection (ie. get sued-->forced to sell @ 10-15% market discount, 6% agent fees, not much meat left on the bone @ 75-80% LTV)

If you don't have many assets to protect, you really aren't much of a target for a lawyer.