Actually even though we may not like it because of the impact on the per booking profits, I think it's in our interest to make sure this business is (or will become) explicitly legal and solid in the cities we operate.

Just trying to arm myself with as much knowledge as possible before we officially start.

Our investment arm is odd in that we not only do real estate investment, but we also are a lender.

A good lender will welcome you with open arms and encourage you to ask questions :)  And there's always creative financing if you want to move forward with using very little of your own money and credit.

If you are close to a hospital, Oil / Chemical Refinery, Armed Forces base, etc....then you can cater to those people (i.e. nurses, refinery workers, military, etc.). 

In other words, you want an "arm's length" transaction where you are treated just like any other buyer in the market.It would be like investing in XOM (Exxon) and then buying gas at a company owned retail store. 

@Mark Rechkemmer,All transactions involving your self-directed IRA must be "arms length", meaning that no disqualified person can be involved in the transaction in any capacity, directly or indirectly.

I called like 30 banks trying to find fixed rate 5+ found a local bank that will do a 25-30 year term but still has a 5/10 year ARM with limits on how much can raise.

I bit more of a arm length then you obviously but my first purchases I ever had in US I didn't even look at the property before I bought it.

They have another loan (5/1 ARM) that I can use in the meantime, but the rate is awful.