Because when you try and sell 123 Main street a 3 bed 2 bath house on Craigslist without a RE license you are violating CA business and professionals code.

A senior secured loan gives a lender a structural advantage over “mezzanine” or subordinated debt because senior debt is the first to be paid; it has top place in the event of liquidation.

Aaron, your vetting should be the same as most other professionals. 

In the next 15 months I plan on having $90k in savings + 15k in equity, I'll have listened to all 270+ podcasts of Bigger Pockets, read through a list of 30 books I have determined critical to my success, and formed a TEAM of likeminded business professionals. 

The "secret", in my multifamily experience, is that, come due diligence, you'll need at minimum a licensed property manager and/or general contractor and any other certified and bonded professional necessary for your project to do their jobs in inspecting and estimating costs.

@Jerel EhlertThank you for your professional advice, I really appreciate it! 

@Grant Rothenburger, I don't think it's necessarily a lack of deals, but that everyone mailing to the same Absentee Owners.Investors in overcrowded markets need to look at alternatives like Seniors who have owned their home for 20+ years or Homeowners with low Financial Stability Scores (FSS).There's even a new list where you can mail to the children of the elderly homeowner - since they are the influencers.

This guy isn't a professional.

For some reasons, the property will go to auction, and lender will pay tax plus all the interest and penalty in redemption period to get back the property. if after redemption, no any one pay, you can ready for foreclose process, and yes, you will own it free and clear except other super senior lien (like IRS...)AND Yes, you always can try to contact the owner to make a deal.

If the property has been  well maintained (I know, this can be relative), usually $1k is enough to turnover (carpet cleaning, professional cleaning of the rest of the house).