It is no more complicated then that, at least from our standpoint as the borrower.

If you're wanting a more precise value, look at the expected rents for each unit, factor out reasonable expenses and then compare to the comps that have sold recently in the area.I highly recommend reading Commercial Mortgages 101 to help you break into the world of commercial buying and borrowing: http://www.amazon.com/Commercial-Mortgages-101-Everything-Winning/dp/0814415075/ref=sr_1_1?

I have calculated my own risks when borrowing money and have a backup strategy in place if something should happen, but if you have no money and no assets and all you do is borrow money your in for a hurting.

What I can guarantee you is that a lender may not seek any payment on any mortgage unless that person signed that note as a borrower or to guarantee that loan.

Seems like there should be some borrower protection to prevent it or why wouldn't the banks make it more common practice??

If the debt was reaffirmed or a stay was issued and if in default, it's on the borrower and subject to foreclosure.

If we assume it is AR, then here is what you finance department says about private party exemptions:A person who engages in seller-financed transactions or who as a seller of real property receives mortgages, deeds of trust, or other security instruments on real estate as security for a purchase money obligation if: (a) The person does not receive from or hold on behalf of the borrower any funds for the payment of insurance or taxes on the real property; and (b) The seller does not sell the liens or mortgages in the secondary market other than to affiliated or subsidiary persons; (xi) An individual or husband and wife who provide funds for investment in loans secured by a lien on real property on his or her or their own account and who do not:(a) Charge a fee or cause a fee to be paid for any service other than the normal and scheduled rates for escrow, title insurance, and recording services; and (b) Collect funds to be used for the payment of any taxes or insurance premiums on the property securing the loans; The issue with the rule interpretation is that in some states an MLO must be employed by a company licensed to conduct the activity of brokering or lending.

I have not spent a dime on real estate education outside getting my sales license (which I have made back many times over in saved commissions), and a few books (most of those I borrowed from the library anyways).

Many of these end up finding or lucking into relationships with good solid borrowers and continue mutually profitable relationships.

A borrower with a greater degree of having the ability to repay which poses a significantly lower risk of paying as agreed and 2.