The learning curve is really large and it has some limitations that really hurt how I feel about it.

Because the property is paid for, it is a fairly large amount that would be exposed even in the llc. 

They were working on getting the property financially stabilized and the development planned before taking a big hit during COVID given their large portfolio of retail.

This doesn’t occur often, but the deal is so good, just a few of these in the course of your real estate investing career will turbo charge your pathway to large net worth.Since examples can provide clarity, I’ll provide two examplesA number of years ago (7 years) I was approached about purchasing a note from a property owner who sold his retail center and carried back a $500k note, current principal $476,000.  

I know insurance company need large unit. is it easier for 3b~4b to find tenant?  

California has a lot of nuances, but most virtual CPA firms on BP are familiar since such a large portion of clients come from there! 

To be clear, there is no debt counted in my heloc towards DTI, it is treated like a large balance on a credit card that is not being used.  

Keep in mind my buddy is 28, a manager at a large tech company and very responsible/clean.

I would agree with @Garrett Brown You want to spread your risk by adding more units than one large monolith.

There are definitely pros and cons to each so I figured I would just lay out a few benefits and personal thoughts: Small banks/brokerages:Pros:- Some regional knowledge of the market- Possibility of more creative lending guidelines with bank specific programs- Sometimes they have competitive rates for their areaCons: - weak balance sheet (more strict on some guidelines, no wiggle room, inability to be flexible or grant exceptions because they cannot afford to hold less than perfect loans)- Can't scale with clients to different markets- Usually limits exposure to individual investors (they don't want one investor to be too big of a portion of their balance sheet)- Lack of experience with multiple solutions (tend to have 2 or 3 loan products they sell and are too niche to provide tailored solutions)Large banks/brokerages:Pros:- Large compliance departments that understand individual market guidelines (typically each state has specific lending guidelines that augment the national baseline)- Ability to scale into multiple markets with same lender (licensed in many states)- Impossible for individual investors to "outgrow" a large bank's balance sheet (not concerned with one investor's concentration)- More lending solutions available for different scenarios- Often comparable or better rates given the game is volume basedCons:- Can be more difficult to get fast responses if the bank/brokerage does not have good follow up systems in place (or if the underwriting/processing staff gets overwhelmed)- Bad large banks can feel less like a relationship and more like a cog in a factory (less personal)Overall, I have worked from both and worked with both as a loan officer, branch manager, and as an investor/client myself.