If what you do looks more like brokerage than investing, they will demand to see your license and hold you to the standards of behavior of brokers—most notably a fiduciary duty to the client.

Conforming is if the note is to be resold on the secondary mortgage market the secondary market will require it to "conform" to certain standards.

And let’s say that returns 8% (the standard that I see everyone use).

I know you plan on doing wraps, but remember the quality of people you're going to attract with wraps are going to be in the "sub prime" range.

Really it would only take me about 3- 4 smart rehabs a year to maintain my standard of living, if I never did anything else.

This, I believe, is the "gold standard".

The standard Texas contract (the TREC contract) has a paragraph for an option period which requires an option fee to be paid.

I prefer to take an average sold price per square foot of the area for the last 12 months and work off of this data as my standard.

Also in an HOA or POA, you HAVE to maintain a standard level of yard and exterior maintenance, or you will be fined.

If you're talking Lowe's rugs and nice but medium quality furniture...it's hard to furnish for $10,000.