Yes, many hard money lenders have gone that route, and it's had horrific effects on our market, laws, and reaped havoc on our industry.Truth is, that for many of us, who are more conservative hard money lenders, our business model NEVER makes money when the borrower defaults.Yes, you heard me right.

Probably want to get an accountant and an attorney (for the Operating Agreement), but this "solution" is cost effective, necessary, and sufficient when dealing with more than one and less than several people.

Maybe not to the effect of 2007-2008 financial crisis, but I see another recession on the horizon.

Who knows as things develop if I can find time away from designing our nations best new military aircraft and I can figure how to apply that technology to RE cost effectively?

So yesterday, I decided to google something to the effect of "where do I find foreclosure listings" and what I got in return was a bunch of websites with an annual fee or bank's REO properties.

This may also be the law where you reside, but even if it is not, most conventional lenders will have convenants in their mortgage subscription terms which will not allow it.Now, if it is the case that the family member(s) are providing a loan for the entire amount of the property purchase, then the loan is private and if both parties agree to a 5-yr term w/ interest only payments, that is fine ... they effectively become the mortgagee.

I get the intent of the requirement, I would comply but I wouldn't be terribly specific either.I would put it back on any regulator type or on any attorney that may use that information against me by putting in terms of underwriting guidelines published by Fannie Mae as currently in effect as well as Housing and Urban Development guidelines as applicable to the type of property.

Other advantages is the bank will schedule the BPO through you, so you can do the walk through with the agent doing the BPO and this can be very helpful because you can influence the pricing opinion of this agent by pointing out anything helpful that might effect pricing of a home as in repairs, crime stats, school districting, whatever it maybe that would effect that opinion downward.

Drafting notes to be serviced by a third party effect payments made, how money is applied, escrows if any, default provisions and changes of servicing must be considered.

They give you similar results (on their face) but are entirely different ways to get there and contain very differently 'lasting' effects.  40,000 Sq.