To add on to Laura's point- How common is it for a lender to come at you with some sort of loan fraud situation?

Hey everyone,I'm working my through a fairly familiar scenario, looking to jump into the brave world of multi-family REI without having the seemingly $100k+ in liquidity to start out with.One strategy I'm considering is seller financing, for it's ability to side step traditional financing requirements and hurdles.Does anyone have any experience with seller financing? 

@Nate Bibbo this scenario is a little tricky....what type of loan are you assuming? 

Unfortunately, this type of horror story is all too common. 

The syndicator is trying to offer high split to investors on upside to get going.I have seen say a 65/35 split sponsor but property is 50 million going in and has upside equity growth of 20 million so sponsor could make 7,000,000 back end promote.Smaller property deals 50/50 is common for seasoned investors as sponsors.

However, if they can just work Indianapolis, that would be good.The scenario is as following, and not sure if it's possible: I'm looking at acquiring a few SFHs.

And another scenario: husband works with a 527 score; wife doesn’t work and similar score but they have someone who plans to move in with them that works and has a 650 score. 

And another scenario: husband works with a 527 score; wife doesn’t work and similar score but they have someone who plans to move in with them that works and has a 650 score. 

I am not really sure what he would charge in your scenario.

I also want to add that in deciding whether or not to take the HELOC you need to look at your worst case scenario and what runway you will have to get out if things don't go as planned.