It would be helpful to hear from LPs on what they view as an ideal level of communication and reporting from a sponsor.Another common takeaway is that many LPs are unclear on how investments are structured from a distribution perspective, including how and why distributions are made over the life of a deal.

Unfortunately, E&O (Errors and Omissions - basically malpractice) insurance is not required for real estate licensees in Alabama, so many of them "go naked."

It’s important to take the following items into consideration:Leverage including not just senior debt but also mezzanine or preferred equity that sits ahead of common LP equity in the capital stackLender quality and who the lender is.

At the same time, some investors we work with are looking to compare risk-adjusted returns, scalability, and diversification across multiple markets they’re already hearing about—Phoenix, Chicagoland, and North Texas being common ones.These posts are meant to spark informed discussion, surface real-world experience from people like you, and ultimately help investors ask better questions before they ever invest out of state.

Shared kitchens and common living areas = newly renovated with all new cabinets, countertops, and stainless appliancesRent by the roomWeekly rent, paid every FridayTarget tenant base: working adults (not student housing), transitioning veterans, travel nurses etc.  

Experience, contribution of real estate, labor, capital & balance sheet strength for loan guarantees are common factors to consider as well as objectives.Those inputs form the foundation of the partnership, and the way the partnership is structured flows directly from them.

I’m only touching the tip of the iceberg here, but beyond commonly known items like FBAR reporting, there are forms such as Form 3520 (and many others) that foreign investors need to be aware of, along with additional reporting, withholding, and structuring considerations.

Research the area you plan to invest, learn what the most common expences come up and how often, apply a little common sense (add extra to the budget for the unexpected), and build a cash reserve or contingency plan to address these expenses. 

I'm curious to know if this type of loans are even realistic or common.

So, if a property appraises as is at 300k but being purchased from an estate as a common example at 230k.