Real estate notes is a completely different story. 

I have heard it used different ways.I have used a version of gap funding where the hard money lender funds 85% of the flip (purchase + renovation) and the gap funder funds 10% of the deal.

My other SFR notes have interest rates determined by the borrower's cash, credit score and income - so market rates or higher.I understand the difference in performing vs non-performing notes and that performing can become non-performing pretty easily. 

If comps for a 3 unit property are in the 950k range, then that is what it will come in at.The revenue from the STR will have no bearing on the value of the property itself.People argue about it from time to time, but I spoke with 10 different lenders, banks, credit unions, private lenders, etc etc and they all said the same thing.

A main difference I noticeably experience is who the merchant of record is.Best of luck with your listings!

Example - borrower uses loan to purchase a home in a B or C grade neighborhood for 380k, spends 50k rehabbing primary home, uses 200k to put an ADU in the back, appraisal comes back at 925k. 

How long it takes to be financially ready is different for everyone.

If you like help structuring this deal differently to give you more leverage, let me know, I've worked with new investors on game plans and seen others start with 90% LTV on their very first deal.

You’ll learn how to:✅ Work with different investors and operators✅ Understand the dynamics of real estate partnerships✅ Build relationships that lead to future deals🚀 Lesson: Every good deal is a networking opportunity.4.

So, when investing in areas they don’t really know, investors should research the different property Class submarkets.