If you are lending to real estate investors - you should secure it with the real estate that they purchase with the funds.In the chance that it is still unsecured and it goes unpaid - you are eligible to report a business bad debt on your tax return.This loss would potentially be able to offset your other income reported on your return(W-2, interest etc).

The RMLO will provide you an underwriting  package with the following items: STATEMENT OF COMPLIANCE QUALIFIED MORTGAGE REPORT CREDIT REPORT PROOF OF INCOME REQUIRED LOAN DISCLOSURES SUPPORTING UNDERWRITING DOCUMENTS CLOSING DISCLOSUREThis underwriting package will also help you sell your note for top dollar if you ever choose to shop it!

Hopefully, you already asked to see the following items:- lease agreements (look for: special maintenance clauses and what items the tenant is responsible for repairing if any, late fee dues and dates, security and extra deposits, what the owner pays vs what the tenant pays for utilities, landscaping, pest control, etc)- payment ledger- notices given (if any)- copies of annual inspection reports- Estoppel Certificates (show rent, amount of security deposit) if you do not have an agreementYou will need the current property management company to also provide you with current tenant contact information, keys to the unit, and any paperwork listed above.

The one person paying the mortgage is also the one person that gets (and reports) rental income (settle among yourselves once in a while, like if Joe gets shafted $25k from doing this then make sure you get right with him at some point - buy him a Subaru, or each of you cover $12.5k of his slice of the next down payment, or something). 

There is NO source available to anyone for current balance information outside of the servicer and borrower (Even the trustee/attorney only knows the reported debt amount).

The reports are 40-90 pages long and go through the entire house in great detail.Get an appraisal.

@Yonah Weiss I agree completely it's not that hard to scale the report.

That means that they would not file their own federal tax return; the activity would continue to be reported on the LLC owner's tax return (in this case on your individual tax return). 

It's just playing with numbers at this stage) The attached report is based on the 2BR numbers, as posted to MLS.Those of you familiar with Indianapolis, any knee jerk reactions to this?

They had paid $135K in 2002.Another friend posted TV news footage of the neighborhood as their boat went past our friend's house.