@Chris TedeschiThere are several factors that go into this decision, but ultimately it should be based on your overall asset protection strategy.

Some HMLs/private lenders don't have credit score requirements.This makes sense as your credit score is a good indicator of long-term creditworthiness, but in the short term (like the typical term length of a hard money loan) factors like liquidity are more predictive of timely repayment.Best,Michael

There are a lot of different factors that go into it, like how much time do you have to dedicate to getting your first deal?

My client management skills transfer from another industry, but I admit I am “newish” to knowing what pitfalls that I have exposed myself to in the current transaction.1st - I negotiated with the Tenant to pay their entire 1year lease up front.

@Jillian EzMy CPA told me to talk to a real estate lawyer for the best answer, but offered this:“This depends on several factors including concerns for liability and budget.

Again, not being completely blind to other factors: inspection is good, cash on cash is reasonable, etc, etc.

Thus I think the rule/law is reasonable step to take to minimize exposing sellers to such liability. 

Investing in as a LP vs being a GP involves so many other factors. 

They have to have some motivating factor in their life for it to make more sense for them to sell it to you, knowing they're likely leaving money on the table, instead of listing with an agent.

Are they doing everything they can to expose properties to the widest possible market?