my sweet innocent tenent never cleaned a thing in 9 months , she stained the carpet , it took 26 passes with a steam cleaner to get the carpet looking like new , she kicked a hole in the wall , these are just a few things , total 1,500 dollars worth of clean up and damages, she paid 400 for security deposit , do i send her a bill for the difference or do i have to eat the diff, i took pictures before she moved in and of all the damages after she moved out , :shock:

Would you do a JV, or just secure the note to the property and have your LLC as the soul owner?

Both parties are running the risk of losing the property or being forced to pay the loan off in full if and when the bank enforces the due on sale clause which is present in almost every security instrument I have seen.

This will give them the security of knowing it is sold and the opportunity to make more money on the sale of it then just selling it to an investor.

The legal details are more or less the same.1st loan secured by either a mortgage or trust deed.Seller financing providing a second loan and secured by the property.I will let the mortgage brokers spell out the financing details (rates and terms).Be very careful with commercial.

In the case of Net Bank part of the problem was the bad loans secured against real estate.

I allowed a family to move in without a security deposit but they put in a fence in lieu of.

Extending Jeff's points a bit.If you pool money with 1 person you can still be in violation of the security laws.

We even offered to put down a pet security deposit and even use a product called SoftPaws (a high density rubber cap that is applied to cats nails to prevent them from scratching things, perfectly safe and harmless, plus, its better than declawing!)

I worked extensively with a big time REI guy here in Tucson and was very hot and heavy to buy my first home but have decided to hold off while the values keep slipping in our area.I still have a very strong interest in securing some properties domestically in the next year or two, specifically income producing properties.Beyond that I am always open to any extra streams of income (legitimate ones) so hopefully I can find some info here on markets I may not have investigated yet.