The alternative is typically to search for private lenders at 10% and 2% and who hopefully won't run out of money after one deal. 2) indeed, they are typically a 6-12 month term with no pre-payment penalty and the lender wants you to pay it off ASAP (and do another one)3) you are referring to loan size to ARV (LTARV) and one can easily get to 70% here and 75% is also possible in certain cases.

The transition isn't just about property size; it's about shifting your entire approach.I've observed that successful transitions typically happen when investors have:- Stabilized 5-7 single-family rentals with systems in place- Built relationships with at least 2-3 reliable lenders- Established a maintenance crew that can handle larger projects- Accumulated at least 6 months of operating expenses as reservesI asked a client of mine who owns a 420-unit multi-family in Nevada how he started his RE investment journey, and he told me that he started with a duplex in Buena Park, CA, 40 years ago and used the 1031 exchange to grow his portfolio to 420 units, never paid taxes on sale of any of his properties.The most seamless path I've seen starts with small multi-family (5-10 units) rather than jumping straight to 50+ units.

Ofcourse, as a percent soft costs would depend on the size of the project as some of the costs don't scale with the size.

Depends on investor.Some want low risk and will do it as a loan or want a straight pref.Some may want some upside so go with lower pref and some portion of the upside and some will not care about the pref and want upside which has higher riskNot a one size fits all and depends on what you are looking for.

Most brokers and lenders are incentivized to either close more loans and make money off the volume, or increase the average loan amount size.

Quote from @Lorenzo Lopez: I'm looking to buy medium to large-scale value-add multifamily using OPM.

We offer 100% financing on both purchase and rehab (loan size up to 75% ARV) but only in 10 states.So if the location and the numbers are right, you can be as low as 0% down.Yes, this kind of leverage does exist on the short-term purchase and rehab loan, and for reasonable terms. 

The reality is that 1 generation ago it was easier to trade up and trade down in house size in the same community. 

We couldn’t agree more.Listening and Being IntentionalOne of the key takeaways from the article is the idea that business development isn’t a one-size-fits-all strategy.

I think we could transition this from a medium term rental property to a nightly property and do well, but that would require more time, money and effort from me which I don't have at the moment as I have just acquired a large campground.