I have seen it many times when I was active HML.There is or will be a national hard money lender doing sub 12%.  

Since the income from the sale of the home will be ordinary income then you could build inside a "Sub S" corporation which would be the cheapest entity to create.

As far as the IRS is concerned an LLC that chooses to be treated as a corporation and elects to be treated as an S-corp is no different than a business that is a corporation that elects to be treated as an S-corp.

Better to go with a big statewide or national group or a mom and pop manager service?

Me and couple of my buddies started an S corporation, in which our primary business would be real estate.

I locate properties here in Indianapolis for investors across the nation.

Hello, Larry I am a Senior Mortgage Banker for a national mortgage company and would be happy to help you out with any of these transactions.

National lenders will be more restrictive and less sensitive the market area.

But don't feel bad for the corporate gypsies, they'll get back on their feet.

Foreclosures are up all over the nation and I believe that people will own so much money on these homes/multi familys etc.. that when they go up for auction, they won't be a deal because they simply won't be worth it because of the huge loans on them.