Normally, it is 5%.

No cash flow to really cover your backside if you do the wrong deal.Granted I started investing in CA and felt rather well trained when I moved to a more normal market.John Corey

If the buyer is looking at cash flow only he is not my best buyer b/c he is bottom fishing and in a solid real estate market the bottom fishers are normally buying properties in declining areas of town that have little to know chance for appreciation.

I assume that normally I would never have to pay taxes on this money because it is borrowed.

If something happens in your property and -the tenant (let's say) sues you, -they have to win the suit, -you refuse to settle, -it's not a situation of negligence in which case you're personally liable anyhow, and -the judgment comes in above both what your insurance will pay and the value of the home owned by the LLC...then normally the rest of your assets would be shielded.

The good part is that the leads are normally sellers that are desperate but are not in foreclosure yet.

Rentals are not normally of the same quality and condition as owner-occupied properties, so if the comps are for owner-occupied and this is a rental, the value could be less.Good Luck,Mike

You might be concentrating the risk so that the note buyers are more exposed than normally.

Even back when tech was just a normal industry (changing the world was not the mantra) people seemed to take to RE investing.

My point here is they really do need to warn the other side if they work for you plus the market assumption is the all agents normally works for the seller.