But the ones that did had very good W 2 so they had the cash and income to qualify for loans.

I'm wondering how private lenders get taxed on their earned interest as they loan money to RE investors.

If there are 100% loans... why isn't everyone doing this?

NOI, and thus cap rate, feeds into how much of a down payment is required b/c it feeds into the "sizing" of the loan.Many asset classes, like apartments and offices, have less than ideal in place cap rates today, so you need 35% or 50% down to buy them (unlike a DTI-based home loan, your personal W2 income cannot be used to significantly offset).

You'll want to be able to obtain balances, confirm payments were received, obtain payoff statements, etc.Ask your friend to share the username and password for the servicer's websiteI recommend using a loan servicer to collect your payments and disperse payments each month to the underlying mortgage servicer.

Unless, like he mentioned, the house is in poor condition and won't qualify for a bank loan that a typical buyer would need. 

What’s a Wrap-Around Mortgage Loan?

How much gross leasable area, how many offices, current vacancy rate, age of building, any proximity to hospital or surgical center, what type of loan product for first lien, variable rate/fixed rate, the terms etc ie SOFR + what spread etc, current NOI, cost per square foot, replacement cost per sq ft, and any and all details you can share, I assume HENRY Capital compensation will be similar to your Fund 1, with 8% preferred and 80/20 split? 

I will be leading the charge on building a scope of work, (if needed) reaching out to my extensive database of subcontractors for quotes/work, making selections/choosing materials, and the main one performing most of the hands-on labor, while teaching him (who has no experience) how to do these tasks.

Otherwise you are just getting a juiced return and sitting on too much loan leverage.