The lender does charge the flipper 4 points upfront, and the note represents 55% of the property’s ARV, so I’m not too worried about needing to foreclose if it comes to that.The lender uses his own capital for initial funding and then sells off the notes after that.

If your property is north of the 60, be sure to use comps north of the 60, and don't go too far west, either. 

Say $100 on a $500,000 property.  

If you want to chat about best strategies to get that 2nd and 3rd property let me know!

@Arlinda RexhoWhen considering a 32-64 unit multifamily property in Texas, focus on strong locations with population growth, proximity to amenities, and low crime rates.

Maybe start with adding 1 more property instead of 3.

Less risk as far as a debt note, that's true, but debt is not the only risk to be managed.

These are done between the buyer (you) and Seller.The situation that is most common to find these properties are in a foreclosure proceeding, or pre-foreclosure. 

With 30 years of residential construction experience and having built several homes in the past few years, I bring a strong foundation in project execution and quality craftsmanship.Right now, I’m seeking lenders to help me unlock home equity for property acquisitions and to expand my portfolio.

Hi so we have one primary residence with about 400k equity and a rental property what about 300K equity.