Even the tenants take it to the small claim court, she needs to spend at least $50 to $100 filing fee plus many of her hours.

.% down of the purchase price and the rehab costsCan be used for primary residence with 1-4 units (could also be looked at as a disadvantage)  When using 2-4 unit property, projected income from other units can be used to qualify 6 months' worth of mortgage payments can be rolled into the renovation budget if the house is deemed uninhabitable by the HUD consultantCredit scores can go down to 600s (lender dependent) DTI can go to as high as automated underwriting system allows (typically 56.9%)Allows you to buy a property in any conditionCan use it to fix minor repairs all the way up to basically a full tear-downFHA 203k Disadvantages: Interest rates tend to be about .25-.5 higher than regular FHA loan Additional costs include HUD consultant fee, inspections, title updates, and supplemental origination fee (Cost of doing business, but this is built this into your numbers, so it's no big deal)Must use a licensed General Contractor for a full 203k or up to 3 specialized contractors on the limited 203k Must hold onto the property for 1 year and live in it. 

Sounds like a FRAUD AND SCAMMER.Many legitmate lenders, private or HML, may not ask for advance fees with the exception of an appraisal.

Happy to pay a origination fee and interest or split the profit as appropriate.

Remember: the PM with the highest fees may be the one that makes you the most money.Things to do:1.

Then the Manager needs time to pay any bills on your behalf (e.g. common area utilities on a four-plex), deduct their fee, and pay you.

Rates might vary slightly between Lenders, but fees & Service is, in my opinion, much more imprtant factors. 

For those who offer this option, do you feel that the higher occupancy/rental fees make up for the cost associated?

Remember: the PM with the highest fees may be the one that makes you the most money.Things to do:1.

I typically use hard money to fund my projects but I thought it would be great to bring him in as a cash partner.My question is how do you set up the partnership splits since he isn’t bringing all the cash, he is just bring enough to really cover the hard money fees and holding cost.