That is pretty much the point of my post; since I only have experience with full-service PM, data from other investors’ experiences with other alternatives would be extremely helpful in doing such an analysis. 

They have saved me and my clients countless headaches down the road.

Like anything else this type of investment has some unique risks for both buyer and seller; however, in many circumstances they represent the best alternative for both parties.  

With construction, there are far more variables from cost overruns, scope changes, interest reserves being depleted by unexpected Fed rate hikes, and countless other issues that can surface over the life of a project.

Would anyone happen to have experience with alternative financing options like HEI (home equity investment) companies that would allow us to continue living in our home?

We’ve lent on countless hoarder homes that looked fine from the outside but were disasters inside.

I've had countless setbacks along the way but I jumped.

Communication - Most inquiries go unanswered unless you ask multiple times, sometimes 3 or 4 attempts to any response, which are often superficial and incomplete, requiring countless follow ups to get anywhere close to a detailed answer.

Real estate is only touched upon as a part of “alternative” assets in the financial advisor field, and alternative assets are only a small part of the investment curriculum.  

On paper, they looked like a strong borrower, but the tax-return complexity from multiple businesses made things messy.Here’s what ultimately worked for them:✔️ Used a closed-end second to tap equity✔️ Qualified using a 1-year P&L instead of full tax returns✔️ 738 FICO✔️ 81% CLTV✔️ $225K loan amount✔️ The lower-documentation structure brought DTI from 61% → 49%, which finally made the renovation feasibleWhat stood out in this situation was how alternative documentation options can make a real difference for people with layered income or complex business activity.