Its all legal and now you only have to maintain a place for 5 groups. 1) you can get a heavy cash deposit down for the ownership. 2) they pay quarterly for expenses that funds the overhead. 3) everone has a share of profit when you or they decide to sell for a higher price.

But that wasn’t what the funds were for, they were origination fees - not prepayment for his time to go find a lender.

That may not apply to you, as a financial professional, but I thought I would share the story.Obiously you could re-lever your portfolio to bring the ROE back up, but then you have to place those borrowed funds somewhere that nets a high enough return that the portfolio is ahead, given the drag of the interest and any transaction fees.    

I saved up the down payment for a few months and have a few remaining as emergency funds.

But generally speaking with the new landlord rules etc I wont fund occupied houses whether at auction or non Auction I want them vacant before we fund them.

I’m always open to learning and building strong, mutually beneficial relationships in this space.Looking forward to hearing from you! 

You 3-year stepdown will be a little painful, but, it could be worth it if the funds are needed.

You can get into a bunch of properties with that much money, but honestly unless you just really love RE I'd be pretty tempted to find a couple of decent dividend funds and just harvest the returns.

Quote from @David Morovitz: I am researching Mobil Home Park funds and seem to keep circling back to Sunrise Capital Investors and Wellings Capital. 

I’ve been hearing some chatter about large hotel chains lobbying significant funds to push for regulations or outright bans on short-term rentals like Airbnb.