Maybe you have a couple losers where you lose 10-20% of your principal, which even in the worst case of two 20% losers that’s 40% of 5% which is 2%.

That isn’t a lot of money to buy real estate with, but it might be enough to do some private lending with and grow the principal that way.  

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

So, for as long as the note we hold doesn’t pay off, we collect $10,722 monthly interest and pay out $4,100 on the underlying note - of which prox $2,000 is interest with the balance principal reduction (since our note is interest only this represents note equity buildup).  

ASk them if that E&O covers you when you are the principal in the transaction.

Once you pass the $50,000 in principal payments from financing you are then taxed at that.Personally unless the property cannot be financed by a bank, seller finance is not your best friend (especially in Pennsylvania where it can cost $10k to foreclose on someone and take over a year).

If that doesn't cover the principal balance plus all accrued interest, exit fees, yield maintenance, prepayment penalties, default interest, advances made for unpaid property taxes and insurance (even forced placed insurance), advances on senior loans, foreclosure costs/fees, toxic waste cleanup, costs of resale, the list goes on and on...the lender can sue each and every one of you for the entire unpaid amount.The way this would likely play out, should the lender elect to enforce the personal guarantee, is they would file suit naming each partner as a defendant. 

If renters have to bring their own stuff, they're less likely to bounce because they'd have to move all their own stuff.)Month-to-month-- Principal, interest, taxes and insurance (PITI). -- You'll keep back maybe 5% of all rents for routine maintenance and another 5% for capX (big expenses like roof or furnace replacement).  

started using mortgage calculator, understand amortization ; understand principal and IO payment, understand appreciation calculation.

The big issue here is that the legality of the receipt of out-of state referral fees is entirely permissable if you are licensed in Florida and your license is active with the DBPR and if the Principal is fully aware of the arrangement to pay you a fee this is the important part.