If they didn't, the seller could foreclose.So, you could either:1) Buyout the middleman with cash and assume existing LC2) Write a new LC with the middleman and leave the existing LC in place, but include language that requires proof of payment to the underlying LC.

If they had bought using HML this wouldn't be an option and the seller would have needed to shortsale or bring cash to close.

I’m curious do you allow your tenant to pay in cash?  

Are you looking for more cash flow or appreciation?

If you look for something higher that the $200k, you would have to come up with some cash out of pocket.

My biggest complaints are similar to yours:1. 5-7 days or more from the time the tenant pays the rent until the cash hits my account. 

An annoying fee, yes, and eats into cash flow and profits which is why you likely started on this endeavor, but the lengths people go to try to avoid what is, in the end, only $800 seems excessive sometimes.So, we don't have all of the facts or copies of any documents here, but generally, a trust only governs any assets that it owns. 

I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation.

Cash on cash is low, the irr is higher, and the car rate looks decent.

Lastly, renting by the room is a nice mix of increased cash flow and long term appreciation.