If you get an appraisal, have the lender order it, they can't use one ordered by a proposed borrower....money wasted.If the price is higher than you want to go, might talk to some of your peers and partner on the building, usually how the Docs buy in my area and they may buy more than one med building.

While you may be exempt from the DF Act, you are still subject to predatory lending issues, too much financed, over priced property, borrower placed in a position where they can not perform, lacks ability to pay, and other matters may apply.

The negative customer service experiences many borrowers have had in hard money, is often due to the lack of standardization in the industry.

@Ayodeji Kuponiyi @James Wise et alYou have a choice as a landlord as to how you conduct your affairs.

You're wise to be skeptical.The best way to borrow money like this is thru a personal relationship with a lender and the best way to meet these is at a local real estate club.

To borrow from a favorite Baseball movie of mine, "If you build it, they will come".My advice is to show up on a regular basis to every meetup you can find in your area.

But with such low down payment requirements, what would prevent these borrowers from walking away when times get tough?

But with such low down payment requirements, what would prevent these borrowers from walking away when times get tough?

When I do modifications, I usually like to set up a tax escrow as part of it, but the additional servicing cost and the borrowers past performance in paying taxes without escrow has to be considered. 

Yet you are back in this recovery dealing the same size of deals, maybe with borrowed cash.