Based on your advice, I think the most practical move is to cut my losses and shift into CDs instead.

I currently auto-review after 12 hours, after this experience I may change that practice.

Is it best practice to start with a simple template and modify it as needed for each project?

In practice, most of these relationships don’t start through cold calls, and that’s where a lot of operators waste time.When I’ve seen this work, it usually happens through one of three paths:Existing landlord networksLocal investor groups, BiggerPockets, referrals from other owners, or PMs.

Think secondary and tertiary markets, not high-end coastal areas chasing appreciation.What this usually looks like in practice:• A primary residence with a basement, garage conversion, or ADU-style layout• Separate entrances and utilities where possible• Rents priced below market but still strong on a per-square-foot basisThe biggest constraints are zoning, insurance, and financing, not tenant demand.

No YouTube video or online course can prepare someone to entitle land across different markets.Once you select a market, I strongly recommend engaging a local zoning attorney and a local civil engineer who regularly practice in that jurisdiction.By way of example, I am based in Philadelphia and have encountered very different entitlement issues across projects: one involved an overlay that required negotiations with both the Planning Commission and the Historical Commission to make ADA-compliant façade changes; another required stormwater and Streets Department reviews before a zoning permit could be issued; and a separate $20 million development I am currently working on ran into a conflict between zoning approvals and the building code due to a design team oversight and is now undergoing a redesign.Investors operating in other markets will face their own local land use, zoning, and code issues that are just as nuanced and location specific.As far as the value that's created, there must be a very compelling story of value add for lenders to treat the imputed equity borrower's equity participation.

I’ve noticed a lot of misunderstandings around note investing—especially from people new to it.What are the biggest misconceptions you’ve seen, and what’s actually true in practice?

I'd also second the Lumberjack Landlord, he's a local investor in NH and does teach a bunch about practical every day landlording. 

With the connections you have made that can help direct you to where you can get the best information for what you want to do, now you consume that information and you start to practice by doing what the information suggests.  

None of those moves are flashy, but together they matter a lot.Appreciate you sharing a practical, experience-based framework.