He’s great guy we love to death, but initially found he’s awful at paying us in a timely manner.Rather than chase him each month for checks (I’m convinced he used it as an excuse to buy lunch for my wife), we just write our loans with him to pay everything, points and payments, at the end of the loan when his deal sells.We charge interest on the total unpaid balance each month (i.e. interest on the monthly interest and points) which very slightly increases our ROI but is in no way punitive and maintains our very healthy relationship.This obviously won’t work with a long term loan but almost everyone we do business with now prefers this arrangement.

o Will the developer be able to purchase building materials, bring them in, and have the labor to build while maintaining affordability?

This will allow me to maintain my current net worth, increase my cash flow and I'll still be able to purchase my restaurant/bar in paradise which is what I was searching for, for 18 months.

@Rachel Gill We have a thing for older properties as well ... which is a good thing as our area is filled with Queen Anne, Second Empire, Victorian, Georgian, & Edwardian era buildings.It is possible to renovate these old buildings, making them moderately energy efficient (as good as a modern minimum code built home) and still maintain some of the period decor.  

@Carol Zeroual is correct that corp. might be more complex to maintain comparing to an LLC.

I was thinking about doing something similar where we purchase with owner financing, improve, then refinance with private money or bank to maintain good cash flow, as well as pull out equity for more investments.

Potential for damage to the unit will increase and a fence is just one more thing to maintain.

To maintain/grow your cashflow. 

If we refinance and still hold the properties, they maintain their ownership percentage, but if they have all of their cash back there will no longer be the preferred return. (2B)  If they want bought out, but it's not majority to sell the properties, they can sell their ownership stake along with all benefits to any one at any time.  

Hi Josielyn,  The cabinets are wonderful...can't say enough about how good the quality is, they are sturdy, they maintain their new look, and we still get compliments.