Red Rock Development spent $50 million building the 600,000sqft warehouse (that Amazon now occupies) without a tenant lined up based off the projected growth. 

Because, the lender is entitled to know what risk they are taking with their money.That being said, on seller financing, if someone gets sued and loses, the lien/judgement can be filed at the county, (it's not automatic, someone has to prepare and send the paperwork) which the bureaus will pick it up on producing a credit report.

Hell, if all it takes is offering out some software, i think i gotta call IT in India and get ball rolling, people paying me for chance to send me deals, LMAO, that is a new Pet Rock for sure. 

Quote from @Greg Scott: LOL  Very creative.It could produce a windfall, or perhaps, massive IRS penalties.  

There is a case for buying well-located solid assets that produce immediate current cash flow at reasonable leverage. 

This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

There are times when we see deals on the table that won't produce any cashflow or not enough cashflow to meet our target hurdle rate but the tax benefits or appreciation potential may make the deal attractive. 

$400k equity is producing $1600/month cash flow for a return from the cash flow of 4.8%.  

Many of which are savvy BP type clients who are doing updates/raising rents and then the buildings do cashflow positive even with lower down payments which produce amazing returns (at 3.5-5% down you get close to a 50%+ return a year just off mortgage paydown). 

Commercial properties can be lucrative, but the financing/underwriting required from lenders is generally more "conservative" relative to residential and usually have higher interest rates (unless you have a "rock star", long-term commercial tenant in place) and generally require more equity from the borrower compared to residential.