Considering they all have the same term of 12-18 months, and a projected net profit of 1.5x equity multiple, (a $1MM project, with a $1.5MM ARV) which would you rather:-Debt securities, secured by the property, monthly returns, typically at a higher rate, no accrued returns or profit sharing; or,-Preferred equity, higher risk, quarterly returns at a lower current rate, with a set accrued return which brings your total returns higher than would be with debt; or,-Common equity, highest risk, quarterly returns similar to preferred equity, profit sharing upon sale or refinancing the property based on your % equity ownership.Also, any additional information you're willing to share would be great such as the type of deals you've invested in and the performance/results of those investments, especially if they influenced your decision.

So the fruits of that is that I can live in a $1.5 mil home with a low mortgage payment and property tax bill (thanks again prop 13 :)With prime real estate your income flow is much more secure.

It is unlikely that a novice borrower with poor credit will be able to secure a loan if they do not bring some of their own funds to the project.

And how out of the box did he "they" go to secure funding to continue growing?

But for all intents and purposes, the best way to go about it is to secure a contract with him to buy his house subject to the existing mortgage, which will absolutely get the trustee to call off the auction, then refinance it out in your name.

Just treat them like tenants after you close, keep some of the money in escrow/as a security deposit, etc. 

Look into secured credit cards, shared loans or secured loans. 3 - You must create good habits.

I'm hoping that one day I can strategically make my cash flow in such a way that student loans and job security are no longer a source of stress. 

Everything else was mostly a cosmetic fix.We discussed ways of collecting rent -  Social Security paychecks for rent are nice because there are no inspections involved and the check will be deposited directly to you each month it is due.  

We have amazing 1st floor tenants and I think we are comparing everyone to them which is sort of hurting our judgment on people.Tenant A:Young couple (mid 20's) with a child who is about 9 months oldMake over 3x rent requirement and have 600+ credit scorehave been living on their own with rent less than what mine isonly guy works, girlfriend does notThey want to move in for July 1st (because they want to give their current landlord 30 days notice, plus need to have time to get money to move in - first, last, security)No major red flags here, pretty basic coupleTenant B:18 year old fisherman and his 17 year old girlfriend/fianceHave been living on their own, paying $200 more a month for rent (looking to downsize)He makes anywhere from 2-5k each trip out, which would be more than enough to cover rent, she works at Taco bell, but really she doesn't even need to work in order for them to meet income requirementsvery enthusiastic about moving and will literally move in tomorrow if they could.