Or do they leverage debt, and use the subsidies to cover the equity needed?

What if you're a cardiologist with no debt and making $250,000 annually?

If you've not read Debt Cleanse, you should.

After 20+ years in real estate partnerships, here's what actually puts you on the IRS radar (and what doesn't):REAL Red Flags That Matter:The Partner Complaint TriggerDisgruntled partner files Form 8082K-1 disputesPartnership disputes leading to tax filingsReal Impact: Instant IRS attentionSuspicious Loss ClaimsLosses exceeding investmentArtificial basis inflationSudden large losses without economic realityExample: $100K investment claiming $500K lossesRelated Party GamesCircular property flipsBelow-market transfersFamily partnership schemes without substanceWatch Out: IRC §267 and §707(b) violationsDebt Engineering Red FlagsBasis inflation schemesArtificial guarantee arrangementsPartner debt shifts near year-endCritical: IRC §752 compliance matters!

You will have more success finding LP partners to fill the rest of the capital stack alongside of the construction debt.

We raised $4.5 million in equity and got $4.5 million in fixed rate debt from Freddie Mac at a 5.85% rate.

So that $1 billion settlement, with many more lawsuits on the horizon, would have previously been spent on lobbying efforts.

The house had some signs of foundation settlement when he bought it which were chalked up to age, however it’s clear now that there has been more recent movement (some of this may have been due to an earthquake a few years ago) causing about 3 inches of settlement along this very small house.   

DSCR (Debt Service Coverage Ratio) loans are popular for real estate investors because they focus on property cash flow rather than personal income.

With this in mind, if you intend to leverage short-term debt (hard money), it's even more vital that your underwriting is thorough and that you have the correct systems in place to tackle potential issues.