Increasing the prime adjustment five fold and "artificially" raising the rate (especially knowing that your intent is to grow the account by doing so) would likely expose you to some risk in the event of an audit.

My question is two fold: 1.

It a very detailed pattern and even includes folds!

Build it and they will come@Adam Lowe, sure having a few buyers in the fold is helpful but ultimately if you have a good deal it won't be hard to find someone to move it to, assuming you're getting out there and networking with other investors. 

So, before you look at this link, our question is really 2-fold. 1) Would you touch this property knowing that it's currently completely vacant and boarded up.

Does it get folded into the cost basis of the new property?

That way all you need to do is fold them and put them away. 5 hours is more than enough time for my cleaners to turn over my 3-4 bedroom units. 1-2 bedrooms should be 2 hours max. 

@James MooreYou gotta know when to hold em and when to fold em ‘It’s time to fold em’ Let the guy keep the deposit and don’t give him a red cent for that carpet .

I would think the more common route is to have them sign a personal guarantee so they would be directly liable for unpaid monies even if their business folds. 

@Scott Choppin the issue you are going to face is two fold; one, very few real estate crowdfunding sites, if any, will take on ground up development because they are inherently higher risk, longer term projects that do not appeal to the majority of current crowdfund investors so are difficult to capitalize, and two, investor demand for real estate crowdfunding slants heavily towards current pay on preferred returns which don't make good economic sense for ground up deals.These two issues may sound the same, but they are driven by different underlying dynamics.