Your alternative investments become apples and oranges. 

As an investor without large amounts of capital, you stand to lose loads of money if you try and add apples (actual, known, real numbers) to oranges (best guess numbers).

You may also want to consider Victorville, Apple Valley, Hesperia, Palm Springs, etc. 

How do you like them apples?

That way, you're not just comparing apples to apples, but red delicious apples to red delicious apples.

The offering was a 506(b) and the minimum investment was $100k.An SPE (single purpose entity) was setup to acquire the property and we formed an LLC.I secured a bridge loan through a hedge fund who gave aggressive financing at 84% LTV and a rate of 6.25% I/O (interest only) and I was the loan sponsor.

I think this is an apples to oranges comparison.

Let's compare APPLES TO APPLES as I suggested.  

I would probably counter offer subject to lending compliance at 8% either amortized or I/O depending on how that loan is classified.

Their money comes in various tiers of interest (some IO bridge financing, some equity with preferred return, some class b equity, etc).