Focus on paying high interest loans and on maximizing your income, that will help your financial position when applying for a loan. 

When the person in your position threatens to sue because they have a written contract for the finder's fee, the other person says, "You can't sue me.

I had been financing him for years. ( he is now one of the top Guru's in the country).but he had been turned on to the market and liked it.. and since I knew the borrower so well I did the deals for himnow he had a tough time on the rehab.. what happened to him is what I have been warning folks about on other threads this latest pod cast and book about remote rehab is so dangerous to the begineer.. this guy was anything but.. however my position was so low in the deals I made my money he lost 20 to 50k a house.. contractors ripping him off  thefts time it was a nightmare for him to try to do it from CA> but don't feel bad for him he makes 1 million a month or better right now being a Guru  LOL..

HML facilities are pretty cut and dry.but the borrowing against our notes was when I was in the Land and Timber business.. we would log a track  sell it to a home owner on contract but it would take a year or two for them to go through planning get their house designed etc.. and then when construction loan was ready we would get taken out.Generally when we did these the logs paid for the dirt so we owned the property free and clear and would sell the parcels for 150 to 300k ( our profit)  but could not run our machine collecting 2k a month in a payment so we would borrow 50% against them at our bank still positive cash flow and had the money to buy another timber track.. as these were generally all cash purchases..I suppose those that do the brrr with owner financing could run the same model.. ???

I would love to be in a position to hack every 12 months.

On the positive side, buying the LLC, may allow you to avoid property tax hikes in areas where property tax is capped.If you buy a property, assuming you get a warranty deed, you are usually shielded from any historical issues with the property. 

The way that it works is they are daily interest loans, generally have no payment requirements during the life of the loan, however the equity of the property gets ate up every day. the bank is probably not going to ask them to leave the property when equity position is upside down. short sale is usually an option via arms length transaction, or payments can generally be made for loan paydown and eventual refi once get loan to a more favorable LTV. feel free to PM if you have questions!

no absolutely not but at the same time I'm going to be cash flow positive based on conservative estimates and only have about ~10k into the deal.Here in NJ, the higher HOA fees are offset by the lower taxes on the condo. 

Obviously, you would give the first position to your family member “lien” on the property or some kind of collateral.

Anyone with a lot of cash and under pressure to do a  deal is in a vulnerable position, and having that knowledge cuts down the extent of how vulnerable you are.