They are hands-off, institutional grade real estate investments, and they allow you the option to diversify.

If a financial institution is direclty paying me his client loan for my home usually how long does it take to get the money?

_____________________Investors Upbeat, Yet Cautious About 2016Overall, institutional investors accounted for 2.6 percent of all single-family and condo sales nationwide in the first quarter, down 3.4 percent from a year ago, according to RealtyTrac.However, among 110 metro areas with at least 1,000 single family and condo sales in the first quarter, the following had the highest share of institutional investor purchases, according to RealtyTrac’s First Quarter 2016 U.S.

I do anticipate that the value will continue to increase for the near future, and I like the idea of holding the property to participate in that.

I already learned lot here and keep reading and participating activities.

Go to the Consumer Financial Protection Board web site and search "predatory lending practices" much of what will be found is aimed at institutional lenders, the same theory applies to any lender, also look at the definitions of lender, financial arrangement, secured transaction. 

In this case, you would organize several investors to make one loan against one property with each of their names listed as the lenders on the note, along with their percent participation.

Harold its risk reward and what your comfortable with.8% is basically bank money I borrow from banks at 1 and 5.5 to 6.. so 6.5 to 7% apr.. and those are FULL doc deals with PG's etc.at 8% I would want to know this guy has money and get a PG  ( personal Gurantee) you may also ask for some equity as well.. very common in these deals.. its called a participation mortgage I have been doing those for 30 years they work great.ground up construction is risky from a lender point of view.. you have things to think about and worry about.1. what happens if it gets half way done and the builder walks.2. are the subs being paid... you want to monitor that as well.some things to think about.and generally I am not one to run off to an attorney at the drop of a hat.. but for a 500k deal I would have an attorney write this one up for you and go through the risk factors in your state

If that's something you'd like to participate in , let me know.

I have had several brokerages institute high minimum liability limits ($250k/$500k/$100) for their agents and have their personal auto policy include a "business use" endorsement... but asking every agent to get a commercial policy and name them as AI is over the top and not reasonable.