Most of the deals have been Reg D 506(b), so one has to know the sponsor, but one could be sophisticated (knowledgeable) and not accredited (rich).

@Jason Larson that is not entirely true. 506B syndications can often accept a certain number of “sophisticated” investors.

Think you’re probably right about the sophistication vs. size of operation.

I think the overall point is that there will be varying perceptions of any single event, whether positive or negative, by all involved and it is the generalization of those perceptions that often results in misaligned expectations. 

No sophisticated formula, just what I've rocked in on after 10 years of learning.

Have Sophisticated capital but low clientele.

The bottom line is sophisticated RE investors make it work for the situation each party is in.

Don't get me wrong I'd much rather have a large positive cash flow but looking at the your long term goals and overall lifetime of holding the property perceptive may have some factors that lean towards holding.  

In fact I actively avoid even the perception of potentially competing by buying in states that I’m not licensed as an agent in. 

To date I have been running everything out of a fairly sophisticated excel sheet... but I know there is a better way.It doesn't take many searches to see the internet really likes to push Quickbooks.