My understanding of the concept is to identify a motivated seller with a nice property with a good loan with little to no equity.

You would want to make sure you have controls in place to definitively keep each of the assets and liabilities separate for each underlying entity.Another concept you might think of is actually opening the company as a legal entity with your desired name and then turn that company into the parent company and manager of all of subsidiary companies consolidating up into the parent.

Third, would be the ARV of the completed home.No matter how strongly your broker believes he has a fiduciary responsibility to you (a laughably naïve concept in my view) it’s up to you to know your exit strategies once you own the note.

., thank you for copying and pasting an article from 2010 which has concepts already addressed.

Or if it's just that some agents are unfamiliar with the concept of hard money, what do you do to, shall we way, expedite their education on the topic?

I to the liberty and added some healthy debate to your Bull vs Bear and Market Value doesn't matter concepts in that thread.Here is the other thread: http://www.biggerpockets.com/forums/311/topics/74564#

Sorry to be the dark cloud here.As a new lender and your buddy as a new investor, IMO, dump the whole concept of boarding house and that manager company there are devils in the details that you folks don't want to learn the hard way.

The concept of "date placed into service" is what determines this, I believe.

Otherwise the calculation is meaningless, you are just deducting $X from each and all comps.Same concept with the Car count for the garage, why would you deduct money when Subject has a 1 car and Comp 2 has a 2 car, the adjustment should be positive to Comp 2.

The whole concept does underline the important of us teaching our children what we're doing and why we're doing it.I talk to my daughters all the time about the real estate businesses.