What made you interested in investing in this type of deal?

Thanks @Ryan Kelly IIRC the other options were 'C corp' and 'Partnership' do you known which one is the recommended type ? 

Depending on how well written they are and the "then current" financial laws and the state & county the property is in and the type of lawsuit and the mood of the court and the expertise of your attorney, you can mitigate most risk but not all.

He charges 1/3 of the amount he collects, plus any fees he incurs for court costs, serving the tenant, etc.

It is more challenging to get mortgages on properties that are of lower values, which is why I am suggesting local smaller banks, who have a mandate to serve the local communities. 

@Noah Bacon I know the markets I like to invest in and what types of properties I am likely to find in each of those markets.

thanks, Allan. i have been investing for a year. i own two rentals, one section 8 ana ABNB. i have flipped before as well. all in FL. i guess i'm open to what everbody else is thinking. i think i could do/ figure out any type of stratgies. but i'm looking to hear from experienced investors how would they utilize that cash if they were me

Lending standards are tight across all lender types, and regional banks are scaling back their pace of originations.

I wonder what type of documentation you could provide for 'concerns?' 

It serves as a risk mitigation strategy, providing a financial buffer to offset negative cash flow and acting as a reserve for unexpected expenses.Remember, every investment decision involves trade-offs and considerations.