Their ability to recover their money should you default is much lower in this position.

But if your goal is to cashflow positive from the Day 1, you may find it very challenging due to current day interest rates, high cost of construction and the fact you won't have the efficiencies of a seasoned developer building at scale.

Not sure how active he is on BP, but you might be able to get some insight from someone who was in a similar position. 

While the debt would whip out most of the profit for 'x' amt of time, it would seem to be logical to take on the risk at a net zero income for x amt of years if after that point, the cashflow is all positive.

Still tons of deals that hit the 1% rule and positive cash flow here and you get amazing appreciation potential.

Attend local meetups, analyze at least five deals per week, and connect with investor-friendly agents to position yourself for success.

Be first position until he gets the construction loan, at that time he then will have the construction loan buy out his PML out an pay any accrual interest and origination fees.

I've heard positive comments about First American, as well. 

Wondering if anyone has had positive experiences. 

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