That is a very high pref, and unless there is a lot of current income to offset it (highly unlikely) you're probably buying into a deal that requires a home run just to meet its promised returns.The only crowdfund deals I've seen that offer the returns that you describe are skilled nursing and maybe some hotel development deals.  

I've seen it described both ways.

Can you describe how you use HELOCs that are not your personal residence?

Also, if you any recommendations related to MEP techs for the work you described above (work that goes above-and-beyond typical home inspections), I'd certainly consider reaching out to them and making them aware of your referral! 

I just have no words to describe the deception that people will use to get what they want.

If your money was cheaper then that would really help the cash flow which means it could be a deal.All in all as you described it, it looks like a no deal to me.

I'd feel differently if they just placed the tenant or had not received adequate compensation but that is not what is described here.  

@Jeff CaravalhoThe payment schedule should also be described in the loan policy.

LaDawn - I am sorry to hear about the mess- unfortunately what you are describing is pretty common when it comes to divorces.My understanding is that Texas is a deficiency state - meaning if the auction brings in less than what you owe the bank can still come after you for the difference.  

After 10 years as a broker/manager I have never heard of a fee structure as described above, but perhaps some other BP gurus will have some creative solutions if you decide to stay with a PM.