Here are some key red flags to watch for:🔴 Lack of experience: A borrower without a proven track record in real estate projects may struggle to navigate unexpected challenges.🔴 Overly optimistic projections: Unrealistic ARV (after-repair value) or underestimated rehab costs can signal poor planning—or worse, a lack of transparency.🔴 Incomplete or disorganized documentation: Missing detailed plans, financial statements, or timelines could mean the borrower isn’t ready to execute the project successfully.🔴 Over-leveraged finances: Borrowers with excessive debt or insufficient personal capital invested in the deal could pose a greater risk of default.🔴 Questionable property comps: Overstated market values or inappropriate comparables may mean they’re inflating expectations.As always, thorough due diligence is your best protection.

I think you would be surprised with what you find here.

What are some unconventional creative financing strategies you've personally used or encountered in real estate investing that led to unexpected success, and what lessons did you learn from those experiences?

Sai, I am surprised you chose Indianapolis over Columbus.

I haven't done that or put anyone in collections.I'm surprised they asked to add someone to the lease instead of just moving them in.At least they let you know they abandoned and gave you the keys. 

This is a more affordable option but only protects against named events.Comprehensive Coverage: Often called “all-risk” coverage, this protects against most unexpected events, except exclusions like flooding or earthquakes, which usually require separate policies.

The investors that I work with in your situation like the option of going with New Construction, because there is less maintenance and surprises.  

Matt Motil Cleveland Private MoneySEC Charges "Cash Flow King" Podcast Host Matthew Motil with $11 Million Ponzi Scheme surprised Prisco does not show up either. 

I wouldn’t be surprised if it’s  a marketing gimmick to get potential borrowers through the door through  weirdly worded non recourse language that is effectively recourse or by offering such terrible leverage borrowers would rather have the recourse and competitive terms. 

Build an emergency fund to cover unexpected costs, and ensure you can manage the mortgage without STR income if needed.