Not only do you pay loan closing costs twice so its pricey, but the banks don't make money on all that effort for such a short duration and might opt not to lend to you in the future if you employ that strategy (but talk to a lender first to confirm).Other investors may use hard money loans (short term, high interest loan) to finance the purchase and repairs, then refinance with a conventional loan within 6 months.

The seller will be sending an addendum and we'll be extending the close date to the end of the month.

I'd rather see a note being due in 3 to 5 and I'll accept a lesser yield avoiding longer servicing issues, extended risks and collateral valuations changing, you can't bet on appreciation that's gravy.

We as a group settle on our terms of what we are willing to give and/or give up.The meeting takes place in another city and I remain behind in San Antonio and ask all my prayer warriors to pray for guidance and protection.The meeting goes very well and the "hefe de hefes" aka the investor extends his hand across the table to our lead associate projecting an agreement in terms (50/50 split of profits).Later that evening one of his right hand men calls one of our associates and states the investor felt he could have negotiated a 60/40 or 70/30 split instead benefiting their side.With this information, the lead associate and I discuss our options realizing if this investor reneges on his word, regardless of business or whether he has the capacity to deliver up to $15MM in investment in our project...

Going into a property with tenants can be awesome and dreadful, so do one thing very well:DO YOUR DUE DILLIGENCE.Make the seller provide the lease agreement, proof of funds that the tenant was screened, how they were screened, proof of funds and payment, get a tour of the house, meet with them, do EVERYTHING you can to protect your livelihood given that they WILL be your tenants through the duration of their lease.That being said, if the tenants are good, then you are probably in a good spot.

Both contracts original closing dates have now expired though ours has been extended to allow time for the lender to get their docs over.

- What is the duration of the loan?

Extend your contract if necessary.

The cycle duration between each phase is about three to five years.

Creditors, look more closely to the type of credit they are extending.