The down side is that they will require larger borrower equity stakes in the properties (ie lower LTV of 65%-70%).

@Hector , I have never seen anyone who was looking to borrow funds hand out flyers at a REIA meeting.

Also know as an acceleration clause.A little history lesson…In the old days when banks loaned money and took back a 30-year mortgage that's exactly what you got.It didn’t matter if you sold the property to someone else that loan stuck with the property for 30 years and could be taken over and paid by anyone.Well, in the early 70's banks, lenders, state governments and other interested parties were so upset that they were getting stuck with low interest rates, missing out on taxes, assumption and other sale fees, that lenders started adding due on sale acceleration clause to their contracts.As you can imagine, a lot of borrowers thought this was unfair and brought suit against banks and lenders.Unfortunately around 1979 the United States Supreme Court found in favor of the banks, and today the due on sale -acceleration clause (usually paragraph 17) is found in most if not all conventional mortgages.For years now buyers and sellers have been trying various ways to get around the problem.

This part in particular:The cost of getting an FHA loanFHA borrowers are charged an annual mortgage insurance premium of up to 1.35 percent of the average outstanding balances of their loans.

If you buy for $100K and put $25K into a property and it's now worth $200K, you should be able to borrow between $150K and $160K.

of borrowing against a brokerage account for RE investments.

I have not seen any state that allows a non-registered or unlicensed lender to charge points, so you have another violation most likely.As a borrower, if it's really an individual lender you need to use a loan servicing company, that's the best way to ensure you don't have problems.You could be working with a shamster lender, lots of them out there who lend and even set up a default (just toss your payment in the trash, it could be 30 days before you even realize payment wasn't made!)

Aside from bringing a killer deal that makes a lot of sense, I think it's imperative when borrowing money from lenders that you focus on all of the benefits for them.

Even if your borrower was paying you, the promissory note should contain language that makes being late on park rent a default of the terms.

The deed is still in the borrower's name, and you will lose what money you have paid.