We performed very well for them, but as I stated previously they have experience with us in the first lien position.To make up for the increased risk, I had also considered adding points, increasing the interest or even cutting them in on a small percentage of the profits in addition to any interest.I just want to do right by them as they have already told us they are in for more deals, but I was thinking that we couldn't be the first ones to ever be in this situation and was wondering if there was anything that was sort of the standard.We can provide the cash ourselves, and maybe we should, but I have the cost of funds figured into the deal and we still come out incredibly well on margin, so the preference is just to pay for the use of someone else's money.

Ie. using the proceeds of a cashout refi on the next deal to payoff the HELOC and tapping again for subsequent purchases.

  :)   I recommend you increase your network to be 50% more experienced than you in the local market.   

But then the recapture would increase my basis, which would decrease the STCG profit at that point, correct?  

Sure, it doesn't increase my equity share on the back end, and I am actually doing the work for the 10%, but it is a higher percentage "profit" than my partners.

Risk is they refuse to comply with rent increases etc. placing them in control of your community.

It is getting increasingly competitive as more investors come in from NYC and overseas, but there are still great deals to be found. 

Landlords are increasingly doing this though I don't do it as in not a common practice for the rentals I own.First the legality and the process.

Properties close to Lidl, Aldi, Morrisons and Asda have typically increased by 15% in value over the past four years, Lloyds Bank said.Sure this is in the UK, but it should have the same affects here. 

Here are things I also consider in my model (but I'm also an excel guru and work in investment management firm so i'm good with number crunching):estimated annual appreciation of (but you can bypass this if you assume that increase in your rent offsets all the expense increases):1. assets2. rents3.