The DST real estate providers (sponsors), who possess the special expertise in managing commercial real estate, perform the functions of overall asset manager and investor relations management.

., as you stated, most lenders will require a net worth equal to or exceeding the loan balance, in addition - 10% liquidity post close and multifamily experience.Assuming you have the experience, lenders are fine with you bringing in a loan sponsor who has the necessary financial means to complement you as the operator of the deal.

So various asset classes have different break points at which you could be more passive in nature.If the investor is inexperienced and wants to do MF then maybe they take that 1 million and instead break it up into multiple sponsored deals to spread risk.

The GSEs ( government sponsored entities) like Freddie Mac and Fanny May were designed to help individuals not businesses.

My brokerage was one of the sponsors there. 

But in the case the bank approves your deal, they would roll the rehab costs into the mortgage amount, and required down payment/interest would be based on the entire amount.You would probably have a better shot at getting property loan+rehab funds from a smaller bank or local credit union, since most of them are not tied into Freddie/Fannie Mae loans(Government sponsored, with stricter rules/regulations).

@Ahmad MohammedAssuming you are no longer working for the company that sponsors the 401k plan, the distribution will be subject to a mandatory 20% federal tax withholding at time of distribution.

Right now I will be the one needing all the help, I suffer from "analysis Paralysis" and need to set up a "Buddy" system or (in the rehab world) a "sponsor" to push me and hold me accountable to meet my 2017 Goals. 

I don't think I want to work for a firm but I was told that if I had my real estate license that I would need to be sponsored by one in order to sell in Rhode Island. 

Moderator: This is not a promotion, I'm not affiliated with the event sponsors, only recommended for the benefit of this forum's readers.