The downside is losing a valuable asset that generates rental income and potential future appreciation.Exploring Other Financial Options: You might explore refinancing options or other financial instruments that could allow you to access the equity in your property without selling it.

They can access better financing generally especailly financial instruments, have the scale, and its pretty much completely passive to you.Its certainly much easier to invest via a REIT into various commercial spaces, especially also when the investment isnt' near you. 

A HELOC is a short-term debt instrument.

Your response has been instrumental in shaping my understanding as I navigate this exciting journey.Thank you once again for your generosity in sharing your knowledge and taking the time for such an extensive reply.Best regards,Jonathan

Henry if the funds on equity are borrowed at 6 % what instruments are they using to develop a good return?

@Mack Owens check this out “SERVICING: D1-4.1-02: Allowable Exemptions Due to the Type of Transfer (11/08/2017)This topic contains information on allowable exemptions due to the type of transfer.Unless the previous borrower requests a release of liability, the servicer must process the following exempt transactions without reviewing or approving the terms of the transfer:~ the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).Note: The servicer must notify the borrower that a property transferred to an LLC must be transferred back to a natural person prior to any subsequent refinance application in order to meet Fannie Mae’s Selling Guide underwriting requirements.”

They created a second fund using the same name and invested in similar instruments (non-performing notes).

Establishing relationships and building a network of investors and private lenders can be instrumental in securing funding for larger and more ambitious projects down the line.ConclusionIn the ever-evolving landscape of real estate investment, adapting your financing strategy is essential for sustained growth.

Real estate stakeholders will need to be agile and well-informed to navigate through these changing tides, balancing risk and opportunity.These two factors will be instrumental in dictating the pulse of the U.S. real estate market.