As an update on what we have been doing, we have finally completed on the house in Peniche! 

In the program, it appears that you offer a Pre-Loan Application-- perhaps this is how the program is legal?

If it is someone you know you can give them a straight return as if its a loan - can provide a lower interest rate to provide upside - it really depends on the lender and what are they concerned with and what is their risk profile. 

My belief is that you will be challenged to realize a 10% savings loan n your first effort and there is some chance it will cost more than if you used a GC.  

If you Bank/Lender does not allow it you can refinace the mortgage into a DSCR or true Portfolio loan program. 

After seeing the power of financing and understanding how loans can help make real estate deals like this happen, I knew I wanted to be a part of it professionally.

I just completed my 20 hour course for my Illinois Mortgage Lending License and the final step is taking the state exam.

The builders loan couldn't approve us for the amount we need to get, but we had a loan broker find a loan for 10% down DSCR with a 2nd home status instead of investment home.

And could even get a second home loan if doing traditional financing.

Buy and holds is the key to true wealth with all the benefits of depreciation, appreciation, loan pay down by your tenants, leveraging the equity, cash-flow etc etc, but it often times isn't the active income that pays the bills until you build up a portfolio and even then there's the tenant management or managing your property managers.That's why I'm involved in all 3.