Also for conventional financing, the DP can't be borrowed.

Vetting the operator or borrower is very important.

But if borrowing costs remain high and interest rates don't fall as many people expect, cap rates will have to decompress further. 

That means the government has been borrowing my $600k (instead of $1.2M because I don’t live in California.) interest free for more than 10 years.

The returns will likely be greater if you source the borrower and originate on behalf of the IRA.

I think about this often, its really just running the numbers - if you borrow 100k at an 8% interest rate, will the investment get you more than an 8% return?

With your income, you may qualify for an FHA loan with a smaller down payment, but buying now could limit your borrowing power and increase monthly payments.

If enacted, these changes would bolster real estate valuations and enhance returns for investors.How Real Estate Outperforms Under Different ScenariosIf Interest Rates Rise (Higher Inflation):Treasuries: Medium- to long-term bonds lose value, potentially resulting in negative returns.Real Estate: Higher inflation leads to rent growth, boosting net operating income (NOI) and offsetting the impact of higher borrowing costs.If Interest Rates Fall (Cooling Economy):Treasuries: Bonds appreciate in value, improving returns.Real Estate: Lower rates drive cap rate compression, significantly increasing property valuations and returns for investors.Conclusion: Asymmetric Risk-Reward in Real EstateWhile Treasuries offer a safe haven, they also come with limited upside and potential interest rate risks for medium- to long-term maturities.

"Before borrowing money from a friend, decide which you need most".

And I literally started with no money and borrowed the down payment.