If they have not paid by close of business on the 4th, they get hit with a late fee and have to pay with a money order so I know the funds are guaranteed.Second, the tenant is offering to pay rent but playing games.

I have been trying to break into the investment game for quite a while now and I truly feel that it's now or never.

My name is Justin and I am slowly trying to get back in the game.

I say ok, I think I can come up with say 10K to get "skin in the game" which should cover the 4 points easily on the type of deal I am looking at.

If I engage an attorney, I would try to build his fees into the cost of the loan, probably as points on the backend (after flip).One of my worries is that with the added cost of the attorney and with the return I require to satisfy my risk appetite, the rate I can offer them would be uncompetitive (one of them who has a steady income, good DTI  and prime credit score can get fairly competitive (6-8%) rates on an personal unsecured loan).

Due your due diligence and be sure to understand all of the rules before engaging this structure. 

Do what you know and enjoy, getting creative doesn't necessarily make you more money, it likely means you are taking on more risk and playing a game you aren't prepared for.Everyone's goal in real estate is to create a machine, where in, you stick $1 in the front and it spits $1.20 out the back. 

Usually it's a case of beer, or tickets to a Cardinals game, but never cash.

I like your game plan Matt!  

I engages in hundreds of discussions here on the BP forum on the subject of self-directed investing (which is area of my expertise) and almost all of them people are asking questions, want to learn more, etc.