In other words, if you see an investment that projects higher returns, it means that the investment is going to be higher risk.This is why we refer to US treasury bonds as the "risk free rate." 

I work in treasury.

and apparently a LOT of it went to fraudsters for Lambo's and Bitcoin...The banks were so flush with cash that they parked it in low rate bonds and treasuries and lent the rest out speculatively.

Additionally, markets were (and still are) betting that the Fed cuts rates by roughly 0.75% by the end of the year, but the Fed's just-released forecasts show zero rate cuts by the end of the year and slightly HIGHER rates by the end of 2024.Despite all this, Treasury yields (a benchmark for mortgage rates) and mortgage rates themselves fell significantly after the Fed news came out.Why in the world could that happen?

(b) If any Member would havea Deficit Capital Account at the end of any Limited Liability Companytaxable year which is in excess of the sum of any amount that theMember is obligated to restore to the Limited Liability Company underTreasury Regulations § 1.704‑1(b)(2)(ii)(c) and the Member'sshare of minimum gain as defined in Treasury Regulations §1.704‑2(9)(1) (which is also treated as an obligation torestore in accordance with Treasury Regulations §1.704‑1(b)(2)(ii)(d)), the capital account of the Member shallbe specially credited with items of Limited Liability Company income(including gross income) and gain in the amount of the excess asquickly as possible.

but would point this out:  Right now you can invest in a US Treasury Ibond and get 6.89% on your money leaving it in for a year...

I was about to leave this alone there is no duty to pay more tax than is necessary.When it comes to tax avoidance, we have been guided not by the invisible hand or the guilty hand but by Judge Learned Hand, who famously wrote: “Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one’s taxes.”

Hopefully, I will never sell one of my rental properties at a loss and thus will never have to deal with this dilemma.I am open to changing my viewpoinit if @Amanda Han will provide a reference to the tax code,  a Treasury regulation, or a Tax Court ruling that affirms the position taken in the book.

In COVID world, where both the Fed and Treasury are trying to pump up real estate with printed money (or, think of M1 Garand rifles in 1942, gov't is paying 20% over the normal rifle profit margin), those back-end profits are usually something like 5x to 10x the borrower paid fees on an Agency loan, meaning that if you pay $1500 in lender fees for a $500k loan at whatever rate, I'd expect the bank's back end net profit to be in the $10k to $15k range.Portfolio loans have no back end profit or subsidy.

This would also translate to less time with the money placed yielding close to 0% financial return, or whatever can be captured in the overnight treasury market.