If the amount paid to purchase an existing note is below the principal balance or more correctly, the unpaid balance, the investor will benefit from an early payoff to the tune of the discount.  

Here are some common pitfalls I see for new investors from the private lending perspective:• Insufficient Funds: most lenders are going to be able to lend a first-time investor somewhere around 75-80% of the purchase price of an existing property + 100% of your estimated rehab budget (or an 80/100 loan, for short).

Two days ago it was an investor who created an additional LLC independent of the deed holder entity believing tenants could only sue the LLC where a contractual relationship existed. 

Or they have jobs that won't allow them to commit the time.Therefore, partners who write checks into real estate deals cannot use the wonderful passive losses created to offset their ordinary income from their job or business.But what if I told you there might be a way to use leverage and depreciation even if you aren't a pro?

For your existing rental property, the net rental income from your Schedule E on your most recent return will be used in your DTI.

This way you can begin building your network (and even adding to your database of existing leads your current marketing campaign brings in). 

Limited Future Borrowing: Tying up multiple properties as collateral may limit the borrower’s ability to secure additional financing in the future, as those assets are already committed.4.

There are no commitals until it works for you and there are no regulations or fees associated with using the app. 

The key here is finding the right balance between capital, time commitment, and risk tolerance.

Do NOT commit to anything during walk-thru as tenant will try to pressure you to agree to waive repair issues.