OTOH if I am a performing note with good LTV at that point, maye it won't be an issue.But i still want to seek LT fixed financing, what are my options, and what do I need to do to get there?

Depends alot on your ability to qualify the guy on the end who can actually perform and the representations you make.In some areas it is seen as acting as a leasing/sale broker to facilitate a sale, mainly if you are in the business of doing these over and over, that is not a sub-letting issue of a lease you may have entered into but a business operation with a strategy to circumvent RE licens laws.The are tons of issues, especially for new investors, beware of the gurus and mentors, to date I've never seen them address all the issues that may apply.

If the property isn't currently performing, you'll have a hard time getting a mortgage on it.None of these address your specific question, but all things for you to think about and potentially share additional info with us.

Chuy, the first tip I would offer is to keep your eye on the task at hand as opposed to getting rich.

Yes John I specialize as a commercial broker in multifamily.Residential is 10% but can go up to 12 to 13% if you are buying in a war zone that will be a headache for the PM company to manage.Multifamily if you just have a duplex,tri-plex,or quad the rates typically stay around 10% unless you go for ala carte type services which I don't recommend.50 units or more in one development usually the rate is 5%,under 50 units to 20 is about 6 to 7%,under 20 down to 4 ranges from 7 to 10%.These are not set numbers just what I see.It also depends on not only the number of units but what you are purchasing.If an existing management company stays on they might give you a deal but depends on how they performed in the past from the seller you are purchasing from if you would want to keep them.Also a factor is location and if the facility is turn key and fully performing.If the building needs turning (half-filled) around or is completely vacant there will be extra costs by the PM to get it performing again besides the regular percentages.Anything 5 units or over is commercial lending.Hope it helps.

"fluffing" is a term used in the adult industry - and while its certain some people expect an agent to perform this service in the course of a deal, it isn't a subject that is taught in re school, nor does the term appear anywhere in the code of ethics.

If the note is non-performing out of a bank your due diligencs will be different from buying a note granny has from the sale of her home.

Sometimes a good contact is some of the larger property management companies in the area.Sometimes a commercial real estate agent might be better equipped for a task such as this.

In a typical subject-to deal, there would be a contract or agreement, and the seller's only remedy would be to sue for performance or for loss from his buyer's failure to perform.

Not really sure why, but it is one of those hidden expenses that can drastically effect the performance of your properties.You are smart to be keeping a close eye on it every year.