This is a private agreement stipulating how loss proceeds will be treated, how endorsements are made and may be applied to the debt created.

Formal real estate education treats RE investing as something on the fringes, not "real" real estate, which is listing and selling properties on the MLS.

Experience will teach skills not found in books.More importantly, I am a firm believer in THE WAY YOU TREAT PEOPLE WILL AFFECT YOUR RESULTS.

In that sense, you do sort of treat the borrower a little child like, you are not scolding them, but helping them live up to their obligation.

In another property the same rental agent placed a felon, who proceeded to not pay rent until we succeeded in getting her out.The manager and staff also treated the tenants with contempt.

If you have a contract with a bank that prohibits taking title out of your name and transferring it to an LLC and you do it, a court of law (if you ever end up there) can see the transfer as null and void per contract and treat you as a sole proprietor.

It doesn't matter whether it shows up on your credit report, since you have to disclose it on your loan app.It doesn't matter if you own in an LLC, it's treated the same.

HiThe treat to using debt is to use it correctly.

Wayne you are treating it as a deposit or earnest money.

While he is a family member he is treating this like a true business opportunity.