For instance, let's say I make $200,000 a year from my retail business and I purchase a $50,000 property to rent out.

I have done some of those here in Oregon.. and of course Starker is a famous Oregon Timber family and big timber and land holder out of Corvallis.

In those instances I perform due diligence on everyone since multiple parties are involved and possibly remote.

--had each door's second lock set up to work with a different key.So for instance, we all used one key that would unlock the front storm door handle lock and dead-bolt lock of the main door behind it.

@Daniel Kenney  Generally speaking PG's are worthless in these deals.. if the people borrowing the money were that strong personally they would in most instances be borrowing from a bank ,, or insurance company etc.. they would not be paying premium rates for these deals.. 

For instance, if you could put the city and state where the property is located in the post, someone from that area may answer.

If a note is fractionalized the partial holder's coverage is under agreement with the lead lender, in buying notes you have certain instances or grounds for the repurchase of a loan (which most brokers probably try to avoid) but are still responsible for. 

You would probably need private money in this instance.

If there are milestone payments, I would base it on passed inspections and your confirmation of work complete.For instance, in Austin for plumbing we have rough in, top out, and final.If your project has a longer schedule, you might do bi-weekly draws.  

For instance, I found out in Annapolis that in addition to federal fair housing laws, I cannot discriminate on marital status or source of income and must follow the square foot requirements (listed so much per adult, child under 12, child over 12), so if they met the sq ft and my standard income and credit requirements, then I could not deny them.