You’ll want to get a good understanding of the type, terms, and prepayment options associated with the loan as you do not want your operator to be forced to sell before they’ve been able to perform the complete business plan if it is not in the best interest of the investors.Some items you’ll want to acquaint yourself with are the difference between bridge and traditional loans, prepayment penalties or defeasance fees, interest only periods, rate caps, and refinance options available for the specific loan your operator is leveraging.

Should I only be finding tenant/buyers that can get traditional financing withing 6 months due to the property code in Texas?

Basically you have a title issue, ownership can’t be transferred and traditional lending isn’t available until it is cleaned up. 

-PITI-sewer-water -electric-gas-maintenance/cap ex-property management-lawn care/snow removal.

So are offer was verbally accepted and we should have the paperwork today to move forward on a 2 unit 2br /1bath duplex. 232kUnit 1 has tenants paying $1100/m they cut the grass, shovel snow and have been there 11years.

Do you get prequalified first like a traditional mortgage or do you lock up the deal first with a contract before you look at private lending.Thank you for taking the time,Chris Montgomery

Eventually the property sat on the market for 4 years before a cash buyer purchased it.You can get a really good deal with those kind of properties because they make it very hard for a traditional buyer to jump through the hoops. 

I also want to say we dont stop our traditional investing there.

Tenant also takes care of lawn, garden, and shovels snow in winter.

Horizontal snow and sleet delivered with gale force winds will do that to you.If it were me, that would be my first consideration.