IMO if you are educated on the basics of construction/home improvements then save the $ for real work that needs done.

Instead of giving him a Quit Claim Deed I would have signed a mortgage to him "due upon sale of premises" to minimize his potential leverage in this situation.

In there minds the home is over leveraged and 'the bank will never accept that much less'.

In the last 6 months I've spent most of my time with him educating him and talking him out of a bunch of "deals" cause they're not really deals at all.

If they are supplying leads and education, just take what you get with a smile.

With that being said, I would appreciate feedback on the process of obtaining a portfolio commercial loan so I am more educated as I approach the banks.

Only thing I am trying to get across is that it is interesting to note that all things being equal, leveraging allows a 2% annual appreciation in real estate to equal a 10% annual rate of return in the stock market.

There is no equity to leverage.5.

They think the gravy train will never end and after doing deal after deal with great success they grow bigger and bigger and become more leveraged than ever, convincing themselves they will be out with a huge profit before the next crash.

It would not be hard to put someone in the home and the home needs minor work.Now don't get me wrong I could wholesale the deal, but I also use that as leverage for tax right offs.