A lot of people do a pref with some split in larger, more sophisticated deals.

I always selected partners or "investors" who were sophisticated enough for the deal.

I am not that sophisticated!

Start with people you know - friends, family, your doctor, lawyer, neighbor, business professionals, etc.Public advertising for private money can be in violation of state and federal securities laws so consult an attorney.Some of the very best resources for private money is from people who are not sophisticated investors who invest in CD's.

By passive, I'm talking about someone who doesn't want to actively run a property (would rather hire management) or who has no interest in managing rehabs (though would consider investing in them).Lets assume that these investors are likely not sophisticated to start with, but over time, will get there.With that in mind, lets look at the following cash scenarios and see what kinds of ideas we can come up with.

They are still looking at what constitutes a sophisticated investor and seems they are considering making it easier for start ups.

as matty said, greg may not be out to intentionally screw over people by selling crap, but the way he worded his post made it seem that way....marc, you're a man of the note business, so you understand what he's saying proabably...sorry to say, i'm not as sophisticated with the note lingo as you, and i see it as many people would see it...keeping 'the good ones' implies that you're not keeping (thus selling) the 'not good ones', (the crap)....maybe not what greg meant exactly, but that's the way my eyes read it...i geuss it's a good lesson for us all on typing a little slower and thinking out our posts...i know i'm guilty of letting my fingers go rapid fire sometimes!

(competitors)If the solds all had new kitchens and countertops then don't be cheap.It really depends on the sophistication of the buyers.If they don't like your rehab and have to redo it to their standards it will be reflected in their offer price.I would tell you I would never pay top dollar for a kitchen that had resurface and paint and knobs and can spot it a mile away.It says to "rehabber ran out of money and started half-as#ing to finish the job".Then I tell myself where else did they cut corners??

Even with the help of an IT department, many organizations have failed to implement the right design, equipment and management of these sophisticated systems.

If it is a deal, the seller and his "team" (lol) will be sophisticated enough to require say...show me the money.