I assume this is a multi million dollar deal.the builder of course NEEDS YOUR equity to get his loan.. now the good news is if he  can get a loan means he is somewhat to fully qualified.. you can do a participation mortgage in second position calling out for an interest rate and a bonus you just put it right in the note.. or lets say your lot price is 500k.. you simply write your note for 650k plus interest.. this assure you of profit.I would not do this though if you have no means to step in and complete or cash out the first.. nothing is worse than taking over a build project from a builder that failed mid stream

I know these are good tenants, but are they so good that you would willingly pay $100,000 out of pocket to cover a bite claim?

@Brady Williams I haven't completed a condo conversion but rents/home prices in Point Loma are strong.

My plan is to offer 10% interest to my investors, paid out monthly, take 6 months to 1 year to complete the reno-rent-refi process, and then pay out the investors.I'm not going to go into too much detail on the deal right now, but I will say that i'm very confident in it. 

And you're right -- I don't include that in my revenue so I guess I won't claim it. 

I would have a contractor walk it, and give you a bid for a complete to studs remodel, and add 10%.

@Darvin EzellQ1- Yes, to title immediately to get the workup completed- you need to verify clear and insurable titleQ2- To the title company to hold in escrowQ3- This is a one-shot deal...it's your opportunity to exit the contract based on findingsQ4- To title (based on your question)

I just happened to see something interesting in the area I am targeting and thought if I should proceed before I have my team completed.

Do you advocate actually getting an actuary to develop the estimate for substantiation of the discount or is there a much easier and less costly option to complete the calculation?

Funding sources besides our own cash is getting completed.