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.  

In this particular case, the original debt was $4k and the collections firms are asking for $27k after interst, fees, etc. 

As a landlord you want a tenant who pays rent NOT one that costs hundreds in lawyer fees.