It sort of guarantees your rent because if the tenant doesn't pay they're at risk of losing their assistance.

Small Balance Loan Advantages Small Balance Loans are designed specifically for smaller multifamily properties.Interest rates are set by Freddie Mac and are highly competitive.The debt is secured by the property, so personal guarantees are not required.You can typically borrow up to 80 percent of the property’s value.If you choose, you can make interest-only payments for part or all of the loan term.From CBRE:http://www.cbre.us/real-estate-services/real-estate-industries/multifamily/freddie-mac-small-balance-loan

According to their algorithm, I'm a bad candidate for a HELOC since my personal income wouldn't cover the debt obligations I'm currently guaranteeing.

No game plan = guarantee loss of money.

I actually had another contractor (who we didn't use) tell us that we couldn't to the painting or tile work ourselves if we used him because he guaranteed everything on his job.

My company will be the sole borrowing entity and no other partner will need to sign a personal guarantee on the loan. 3. 

After about 6 to 9 months it will go for auction and if no one bids which is unlikely if there is equity, you get the house.So it's a process that doesn't guarantee you get the title. 

the Note spells out the terms.. deed of trust recorded secures your interest.if you need a personal guarantee  from borrower thats done in a separate document.. you can ask to review a sample note and trust deed and P G  .. other than that there is just borrower info.. credit score net worth that type of thing.. you may also want to background your borrower make sure they are good citizensOH also you want to see title report if its a fresh funding.. or a copy of the title insurance if you buying existing and make sure the insurance is still in effect for any assignee  as you would be buying the loan via an assignment

This guy is trying to scam you guaranteed.

I would consider hard money lending, but I need to be 100% sure that my money is guaranteed, and I'm not sure how the taxes, being that that would be considered active income, would be affected.Thanks in advance for all your responses and help.