@John Kim @Travis Biziorek is 100% correct.S8 really isn't difficult, but it's not the answer to everything that the self-proclaimed "gurus" make it out to be.With S8 tenants, you're just trading one set of challenges versus direct paying tenants.When we advertise a rental, we take the best tenant we can find, immaterial of their source of rental funds.You want to be careful investing in the City of Detroit because there are a lot of "crooks" trying to sell you Class D properties dressed up to look like Class C or B.Connect with us or Travis for more info!

Quote from @Charles Kennedy: Hey BP community,I’ve been spending more time lately digging into mortgage notes—both buying and selling—and I’m curious how others in this space are approaching it.A couple of things I’ve been thinking about:Do you prefer performing or non-performing notes, and why?

NOT saying you should do this but I have seen some investors slightly (some not-so-slightly) "inflate" the construction cost to recoup some of their money.The bigger challenge I think you face is getting with a General Contractor / Builder who has your same goals aligned with you. 

Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.Tenant Default: 20-30% probability of eviction or early lease termination.Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.Vacancies: 20%+, depending on market conditions and tenant screening.Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.Where did we get our FICO credit score information from?

The sky hasn't fallen yet, and I imagine similar conversations 100yrs ago when landlords back in the day were panicking over city code for electrical, fire, sewer and banning dirt floors.If we get a challenging ordinance, then the market will adapt.

I’ve been having more conversations with investors about raising private capital, and I’m curious how folks on the lending side are approaching things in the current market.For those of you who lend privately:-What’s your comfort zone on LTV these days?

Markets change, lenders shift, and investors have to adapt.I’ve been hearing that some deals are stalling due to tougher underwriting or liquidity issues.What’s been your biggest funding challenge lately — and how are you overcoming it?

As Scott said, there are two different paths and while they are not mutually exclusive, they are different and require different approaches. 

As the portfolio grew, I leaned more on creative finance strategies — subject-to arrangements, seller financing, leasebacks, and private lending relationships.Over time, I developed strong connections with private investors and lenders who valued the consistency of my approach an How did you add value to the deal?

What’s been your biggest win or challenge working with notes?