Owner carry back can have advantages to both seller and buyer.

The only issue we have had getting the claims paid is when we filed against the renter's old policy and not their renewal policy, however our sister company in Denver (who initially turned us on to Rhino) have stopped using it after a couple of issues collecting.We have tenants carry 2x the monthly rent in Rhino coverage in lieu of a traditional cash security deposit.

Additionally, Mezzanine Debt may sometimes allow for a second lien recording, providing an extra layer of security.On the other hand, Preferred Equity generally does not carry a maturity date like debt instruments.

It’s a numbers game and a leverage game.For example, you could split that $45k into two (properly analyzed) deals, leveraged with smart financing, and then refinance after rehab, cash out your equity, cash flow the properties, and carry on with more deals using the equity you extracted.

They can be all dangerous and some often carry legal risk.

The whole idea of an LLC is to prevent future damages.The doctor said I could smoke cigarettes because most people don't get cancer from it.99% of the people asking about LLCs in the forums here do not need and can not form an LLC to carry a property in because they are using residential loans and don't have an LLC with 2 years of tax returns.

This wild ride underscores the power of relentless follow-up and the hidden gold in every lead.

Ivana, there's a TON to unpack here and I'm happy to carry on the convo via DM or a call.You're not crazy.

If you can find local deals (within 2 hours of where you live) that make sense, they can be gold mines. 2 hours seems to be the max that most people would drive if you HAD to do your own showings or move-in prep and local management proves unreliable.

Having access to the funds without needing to refinance again could save on fees and give you flexibility when another opportunity arises.However, if you’re cautious about carrying extra debt with no immediate deal in sight, taking only what you need now might provide peace of mind.