Marie, Please keep in mind that when you see people referencing with these funds it's because they are invested in these funds, bought the sales pitch hook, line and sinker and are being told by the operator, "don't worry about the market, we're experienced and conservative so you'll get all your money back and a tidy profit.

@Zach Howard there is no agreed upon Classification in the 1-4 unit market.We've done our best to logically create a system for our market, mostly based upon relative sale prices, but also using crime rates, rents, occupant income and a few other variables. 

Plus, if you'd like to connect and talk marketing/sales happy to do coffee or something.Also, there are tons of Facebook groups for Chicago real estate.Lastly, just doing some 1:1 networking with lenders, agents, and architects is something we focus heavily on.

Cash invested: $65,000 Sale price: $97,000This property was a very early lesson learned in private mortgage financings for me.

Consult with a tax advisor or attorney familiar with both partnership law and real estate to ensure compliance and minimize tax liability.Once under a TIC structure, 1031 exchanges for individual members could allow them to reinvest proceeds from the sale of properties into new ones without triggering immediate capital gains taxes.

Before you build a pipeline you have to get your experience in sales conversion and knowing how to find the right product for any client you may encounter. 

I generally look for two things: new homes on the market for sale are they being sold very close to asking price, with short days on markets or not.

That’ll create higher chances of your project finishing ahead of time and create better alignment with you and your general contractor.

Long story short, you can, but since you are only targeting investors, your sale price will likely be lower than comps.Talk to a local agent about your local tenant laws and have them review their lease

there you go. the problem is appraisal. comparable sales, and your approach to building an ADU against the recommendation of your market. super beginner strategy it's popular in ohio as well but just not worth the investment.