You have to pay to live somewhere, so we aren't considering the mortgage as a traditional "holding cost".

I have a traditional loan on my current home.

Hey, just wondering if there is a difference in closing costs when you purchase a home with all cash from a line of credit versus when purchasing a property with a traditional mortgage.I dont know if it makes a difference or not but the line of credit is secured with assets. 

Explore alternative framing techniques/materials to the traditional stick framing that may be cheaper or provide better value over time given the high lumber costs (ICFs?

You’ll want to get a good understanding of the type, terms, and prepayment options associated with the loan as you do not want your operator to be forced to sell before they’ve been able to perform the complete business plan if it is not in the best interest of the investors.Some items you’ll want to acquaint yourself with are the difference between bridge and traditional loans, prepayment penalties or defeasance fees, interest only periods, rate caps, and refinance options available for the specific loan your operator is leveraging.

Should I only be finding tenant/buyers that can get traditional financing withing 6 months due to the property code in Texas?

Basically you have a title issue, ownership can’t be transferred and traditional lending isn’t available until it is cleaned up. 

Do you get prequalified first like a traditional mortgage or do you lock up the deal first with a contract before you look at private lending.Thank you for taking the time,Chris Montgomery

@Christian Sifuentes I would say the area around Morgan state is pretty good generally. 

Eventually the property sat on the market for 4 years before a cash buyer purchased it.You can get a really good deal with those kind of properties because they make it very hard for a traditional buyer to jump through the hoops.