Did the contractor perform on time?

I would be tempted to sell and put the money into something that would perform better.One thing to consider is your capital gains.

If you default they have a non-performing asset on their book that has an unfavorable equity position.

So, any L/O, Sub-2, Contract for Deed or any note thereby secured by a residential property are all financing agreements.Now, a lease at market rates without any purchase credit allowed or granted together with a true option, where no part of the option price is financed and it is paid as a lump sum when made is not a financing contract, so you could do those.BTW, any agreement to reduce a sale price over time for past performance can be seen as a financing arrangement as well.If your transaction is not specifically exempt, compliance is required in any installment sale.

They will be risk of loss, time until being paid, your ability to perform, what happens if you screw up the repairs, etc.

Do they meet the three aspects mentioned above, does the NRD carry little risk of paying as agreed, is it over collateralized and is such a financing arrangement usual and customary in similar transactions.Firs of all, individual borrowers die, they can become incapacitated, they can be injured or become ill to the point they can no longer perform.

Hope you'll monitor this thread @John ChapmanWe may get more posts as I'm sure .many operators stick the LLC documents in a drawer and forget about them.You LLC doesn't need to be read, it needs to be studied carefully.It also needs to be tended to, there are entity maintenance matters to oversee depending on how it is structured you may need to keep your LLC tuned up monthly but at least annually for it to perform.

Can you enforce "Specific Performance" on the contract?

That's not to say there isn't a very specific definition of ROI, but what ROI is telling you may not be exactly what you want to know.There are lots of specific return metrics -- cash-on-cash, IRR, return on equity, etc -- that can be used to evaluate the financial performance of a deal, and it's up to you to determine what metrics you care about and what you're trying to optimize for.I would recommend getting familiar with several different performance metrics, figure out what information each is conveying about the performance of the property, and then use the one(s) that are providing the information you really care about.

Those contracts show up and are expensed as performed in small operations, temp work can skew reality.I'll stick to my initial impression.