I can legally deny them or other business.

Understand the basics of private lendingResearch real estate marketsDetermine your investment strategy and criteria for loans, including:- Amounts- Interest rates- Repayment termsCreate legal documents with a lawyerNetwork with real estate professionalsPerform due diligence on potential borrowers and their projectsBegin with smaller loans to gain experienceMonitor your investments closelyConsider joining a private lending group for additional resourcesStay informed about real estate trends, lending practices, and legal regulations

Most are fine with that, but a few will have problems with it and claim there are legal issues, etc..

MA is a very tenant-friendly state so I try not avoid the legal route, even if it costs a bit.

They can definitely tell you what you need to know legally and licensing wise in NJ/NY as there are some restrictions in certain states and I think NJ is one of them. 

You can also explore FHA with 3.5% down as well with 1.75% Upfront fee + anything with more than 3-4 units, there will be a SS rule (Self-sufficient test) to pass per FHA guideline.If it is a legal multifamily unit, you can also use those vacant units as your rental income up to 75% of gross market rent.

So that $100k+ ED is coming from your pocket, before it can be reimbursed by investors.Legal Fees: you can't raise money without legal contracts setup.  

This doesn’t mean you’re rushing into legal action—it’s just about setting clear expectations and boundaries.

If they're in the same state, that will make your legal team more streamlined, but otherwise, you have to form all new vendor teams when assets are scattered across multiple MSAs & states.

Could any of you please advise us (not legal I understand) if setting up an LLC or these homes in a trust, etc would be beneficial?