This cap rate is not completely out of the realm of what things are trading at.  

My cost wont necessarily be the same or comparable as I GC my own projects and have trade skills.

They go through a management company, M.

I currently work in the turnkey investment world helping investors create a real estate portfolio, if you are ever interested in trading different strategies and goals, I'd love to connect! 

We are both 28 years old with zero experience prior to getting involved, she works for the business now and I work Blue Collar in the trades. 

I own Granite and Pine Properties - a Direct to Seller Marketing company that focuses on giving sellers 3 selling options. https://graniteandpinere.com/My advertising is word of mouth, social media, SEO, mailers and cold callers.

Hard money lenders are often more willing to take on higher-risk projects and offer faster closings, but the trade-off can be higher interest rates and shorter terms.

@Jaren Taylor, not sure if this is why you talk about raising all cash, but given most deals are trading in the 5% cap rate range, and agency debt is 6.5% while balance sheet debt is closer to 7%, I whole heartedly agree that all cash is the ideal capital structure for many properties today, if your goal is to maximize overall returns for your investors.  

Sure, they may be able to grow to a very moderate size,  add a few units, or trade up to a larger investment, but as for real scalability: NO.Why?  

I'm presently a facilities engineer by trade, who does some construction and maintenance for landlords on the side, hoping to get back into the private real estate game.