Since brokers are not appointed to represent specific insurance companies, they must post a $10,000 bond before acting as a broker.

I have no issue with someone wants G to diversify and buy stocks & bonds with their 401k funds too.  

So many of these "I got screwed buying turnkey" posts seem to come down to two common pitfalls:(1) if you want steady income, buy a bond. 

If you want a return on your cash now, bonds and CDs are a better bet than real estate.

" - If you borrow against a financial asset like a loan against your CD/savings, loan against your stock/bond portfolio, loan against your 401k, or cash value life insurance policy loan the payment due each month is not calculated against your debt to income ratios (with conventional financing) which is important if your ratios are tight in the 45-50% range - if you obtain a loan from a real/tangible asset like real estate or your business entity the "net," payment will be counted towards your debt to income ratios but may have offsetting factors if the asset has income to offset the loss incurred from borrowing - you cannot use a cash advance against an unsecured source like personal lines of credit for down payment (there are ways to do it if you have time) - you can only use business funds for down payment and closing costs in limited scenarios where use of the funds will not be detrimental to the ongoing operation of your business (based on underwriter's interpretation of your financials).

I cut my teeth as a commercial real estate attorney and now I'm changing hats to become an investor. 

The GC can use subcontractors but it all has to go through the GC. before you close on the loan, there is a huge stack of paperwork that you have to go through and the GC has to be selected and finalized and you must turn in the borrowers agreement, signed bid and scope of work, and the GC has lots of paperwork as well.The GC you select must be licensed bonded and insured, provide several references. 

The rationale is you would never want your Coc to be lower than say bond or other not so risky investment.

You do have to get the proper insurance and bonding.

@Matt LeonardSince you are investing in Maine - you may be required to file a maine tax return that report's your rental income/(losses) to the state.LLC if not taxed like a corporation is a pass-through entity that will flow-through rental income/(losses)(aslong as the LLC doesn't own bonds/stocks/etc that generate interest/dividends) to its members.