If you have cheap leverage and the ability to earn a higher ROI on the money by using it to fund the next venture I would use it towards the next venture & keep the loans open.

If I can detach my partner from direct financial "proof"/liability, then that will help improve our ability for financing.

This could change your combined loan to value which may have an impact on the bank's ability to give you the loan (according to their guidelines).

Let's say the IRS audit me and present me with a bill including penalties for, I don't know, say $200,000.

Interest rates are low, but if we run into any strange regulations that limit buyers' ability to get loans, things will slow down.

I will try listening for the leak, though I don't feel confident in my abilities to diagnose this problem very well.

So this isn't making or breaking his licensing just his future ability to take the test.

That gives the seller the ability to sell the note if they want rather than wait 7 years.Otherwise a combination of both conventional and hard loan could be done if you can qualify and structure it properly.

The way to ensure that no other loans would be used is through the agreements/by-laws/operating agreements of the entity in title.Other investors could join based on knowing who the other investors were, thier abilities and level of sophistication, might be fine and a good deal.

I wouldn't think that would bother the bank, their LTV isn't compromised, and if it doesn't affect the borrowers ability to service the loan I don't see their problem...?