And if the deal is better than that standard/hurdle, the sponsors use ultra conservative assumptions to get back to standard and under-promise and over-deliver.My last three investments were in Bradenton FL (self-storage), Arlington TX (multifamily), and all over the country (MHP & SS fund).FYI...A going in 6 cap for an A or B class with a strong value add in a good location is a great deal.Hope that helps.

Buy right, make sure it cashflows, I believe it is the high-end luxury properties and the low end slumlords that will suffer most in a recession from vacany or non-payers.

I'm a GC, and while $500K sounds high to me (maybe you're building a luxury property, which would be more exposed to a correction), I know that no matter what a project is budgeted at, you're likely to go over.

In one deal referenced the poster highlights a major potential conflict of interest as Capella supposedly used an appraisal generated by the borrowers without disclosing this to investors, who later invested $3.9M to finish a luxury home Capella claimed was 80% complete.

Hardwood/Ceramic:  more luxurious, much more costly, but moving in the right direction for up-scale and low maintenance.3. 

i dont know "when" if 2020 is right or not but i do personally think that these mega plex luxury buildings are going to feel some serious pain the problem is that theres still so much capital floating around trying to find yield that even if they take a big haircut on price or large vacancy ... there will still be appetite for the riskone thing that could put a big change in the market and probably not talked about as much is the Millennials will stop wanting to live in a box and will start wanting to move into a house.... suburbs that have been basically looked down upon will find itself going thru a renaissance we are already seeing suburbs starting to get things like trendy coffee shops, art centers, etc to make them more geared toward millennials ... this will continue and i think the "city living" in metros that are not nyc sf will see an influx to places i know what you are thinking "ok Alex sure... but what will be the catalyst will be for this change in behavior?"

I guess if he keeps buying more mansions in L.A it'll keep his real estate agents  making good money too!

He is essentially putting funds with us that would otherwise be in ultra safe investments like CDs or Muni-bonds.The first one in 2014 I offered to pay 6% and he said 'he could only take 6%' (4 times CDs at the time).

I always want luxury vinyl plank if possible.

They then take those notes and package them with others from similar purchases and sell them along with their analysis to private investment funds.This leaves 45 notes from a package of 1,000 that three professional investment funds, doing intensive analysis by highly trained MBAs, have determined cannot yield even a minimal investment return.These are then offered to the individual investor, who according to those in the industry “with something to sell” (the leftover NPNs and/or “training”) can profit enormously by (1) making them re-performing notes or (2) foreclosing and selling the property for large profits.The pitch from those “with something to sell” is twofold: (1) “There is plenty of meat left on the bone” (actual quote), and (2) if you send the borrower a complete package of all docs, weighing, say, five pounds you will “shock and awe” him into paying on the note.I highly doubt either of these claims have even a micron of validity.The parties with a financial interest in you buying into this will cite isolated instances of great success, never mentioning the all-more-frequent instances of total failure.So at the end of the day the training promoters have collected up to $30,000 per person for their NPN “mentoring”/”coaching” program, the retail asset disposer has made 50% to 100% profit on their inventory, private middlemen have turned a $2,500 investment in a note into $16,000, and my sister-in-law who purchased 5 NPNs over three years ago and has spent large amounts on attorneys, taxes, and brokers has yet to see a penny in return.To paraphrase, if you don’t know who the sucker is in any ultra-high profit promise situation, it’s you.