But hoping to now be a part of this amazing community and learn and practice as much as I can to make a career out of real estate!

I may need to start the practice of selling off some smaller properties and going bigger to stay under the 10 if it is as hard as I've heard it can be after that watermark.

Sorry about that.Mindy, no, I wouldn't even consider another property in Louisville or Boulder unless someone was practically giving it away.  

IMO the best way to use other folks returns is to look for best practices, what are people doing who are getting higher returns in 'your market'.

If the money is used for consumer purpose there are a boat load of disclosures, licenses and regulations you need to comply with.Also, what is the value of the collateral, if should be substantially more than the loan amount or you could become partially unsecured both as a practical matter and subject to cram down or lien stripping if borrower decides to file BK.Also, if you don't have a deed of trust to go with this note it's unsecured, it then becomes expensive toilet paper.Also, you should get the deed of trust insured with a ALTA lenders policy.Also, this may be a personal thing but I like monthly payments, not everything at the end. 

You have to be careful as not to violate the FDCPA (Fair Debt Collection Practices Act) when making these types of calls.  

In practice, it's really not so much different from mezzanine debt.The preferred equity strategy is a great alternative to debt financing in cases like yours where you already own the property and don't really want to go through the process of refinancing.  

That why it is better to specify the intent in the contract verses relying on what is common practice, typical, etc. which can always lead to disputes.

I don't really have a lot of income as of right now, although I am willing and am currently practicing not spending any money on anything that isn't absolutely necessary, it will probably take me some time to save up a substantial amount.

How about practicing your answers right here - and your analysis of an example property deal?