If it were to read LP member owns XYZ% and will receive a certain percentage of proceeds based on property performance, that's a different story.

Your advice about understanding the underlying accounting and how the numbers are generated is an excellent point—I can see how that would help me identify any gaps or inaccuracies in the financials.I also really appreciate the insight on how T-12s differ based on the number of units.

Real estate's "gross rent multiplier" is Wall Street's "sales to revenue",  "cap rate" is roughly "P/E ratio".When evaluating markets and investments I tend to start with GRM (or lazily the 1% rule), then attempt to return a cap rate based on assumptions about costs, then I work my way to multiple years of projections (assumptions about inflation, amortization, tax benefits, etc), and if I am partnering with one of my smart friends I have to pull up an IRR (internal rate of return).I also look at regional employment levels, median income to rent ratio in the zip code etc. 

I'd probably stay away just based off that.

It seems most commercial lenders base loan amounts on rental income rather than the property’s value.

Great post, I already here people making major changes to their strategy based on the incoming administration as it relates to not only taxes but other proposals either discussed or used as scare tactics.

Hi Nicholas, I'm based in the Seattle area but have been investing out of state for a past few years.

So it became a long-term action of repeating that cycle to achieve decent LT tenancy base. 

For selling performing notes, companies like Mission Capital or Watermark Capital Partners specialize in purchasing notes, including DSCR-based ones.

My credit is strong, but I'm a newbie.