Giant gobs of capital thrown at businesses that lose money quickly while attempting to get acquired by people turns out to be a risky proposition.  

Hello BP family,Questions up front. Is this a good idea? Are there REI actually doing this? anything else to include in the contract to ensure I get my money back?Story:I been out of REI this year since i believed hou...

It seemed like a good proposition: the investor hands over a chunk of cash, the "turn key" provider produces passive returns for the investor for years.

Either proposition isn't a positive for you. 

They would have been loosing propositions for flip and they would not even positive cash flow per my terms.

Otherwise how will you know how to analyze the merits of their proposition?

To me, investing is a long term proposition.

The cost of owning outright is almost twice the cost of leverage and is the reason why paying more cash for a property than the minimum down payment required is a costly proposition when this business is so dependant on numbers.The greater the equity lying dead in a property the lower the cash flow generated by the property.

So even if we had been able to overcome the POF piece, there were other aspects of the proposition wouldn't have worked for us.

Betting on someone with a lack of experience is a losing proposition.