I understand this changes things and that there are regulations which discourage this.

We're looking at education costs, initial marketing costs, and supplies costs.

what rule/regulations do we follow when charging the interest rate as a transactional funding lender?

Finance is very structured and intertwined by rules, regulations, laws and acceptable practice, you have plenty of room to operate outside the box, so long as you stay inside the larger box.

For sale inventory was at about a 1 month supply in May of this year on average for the valley, but has doubled since that time.

Title insurance is a regulated industry here and the State Insurance Commission sets even the rates that all title companies charge.

Those professionals included on every deal are:1) The Licensed Realtor required;2) The Licensed Independent Banking Institution required;3) The Licensed Loan Officer required;4) There Licensed Independent Appraisers required;5) The Licensed Title Company that will close the transaction required;6) Licensed Architects required;7) The Licensed Land Surveyor required;8) The Licensed Civil Engineers required;9) The Licensed Mechanical Engineer required;10) The Licensed Builders and Subcontractors required;11) the Licensed Realtor Property Managers required to rent the property.SO YOU SEE, OUR ENTIRE PROCESS IS HIGHLY REGULATED AND INVOLES ENOUGH REGULATED LICENESD PERSONNEL FOR EACH PART OF THE TRANSACTION!

I would really like more details on the property to give you advice. 250+ Dom is usually a sign of serious issues with a property, investors won't let good properties sit that long.If you can supply details like purchase price, rehab cost, ARV, time frame to rehab and so on we can give you better advice.Are you nervous about unknowns, or because your using family money?

I read the report online and he was arrested for being on his parents property (who live next door and supply him with electricity).

Keeping track of the regulations, highway taxes, permits for the types of hauling you're doing, drivers logs, and paying the costs of insurance and fuel makes it a tough way to earn a living.