But I’m learning that a lot of sophisticated investors are trying to move outside of real estate and into things like life settlements, land conservation/oil investments for the tax benefits.

The barrier to entry is much lower.The main barrier to entry is the accredited investor status needed and there is an easy way around that for sophisticated, but non-accredited investors.

As a real estate investor you need something sophisticated enough that can analyze a deal with ease in order to submit the right offer.

There has been consistent rain in the area, and the contractor could not get the necessary heavy machinery on site to dig trenches.

Therefore you may need to retain more sophisticated tax assistance (which could be more costly) if you do intend to operate under something other than a simple operating agreement where all tax items are shared equally.You will ultimately need to determine if the additional operating flexibility is worth the added tax complexity and cost.

The competition is also usually pretty sophisticated..

But the main purpose of delineating cap rates here, is to understand the meaning of NOI in the creation and assessment of value for an income producing project.Remember: when speaking with sophisticated investors, knowledge of these ratios and the ability to work them and speak them, will set you apart from the rest of the market.Here is a sample proforma:Proforma Construction Cash Flow AnalysisInternal Rate of Return Analysis

Let's hope your lender is tax sophisticated enough to appreciate legitimate tax planning and reporting on your Federal income tax return. 

Most tenants are sophisticated enough to understand that no one gets a free lunch and they will be paying for it one way or another.

The goals is to make your home feel and look brand new but also taking into consideration that buyers are more sophisticated now and will look under the sink to see if you have leaks or in the attic to see if you have exposed wires or roof leaks.5) Sell RightIf your goal is to buy fast, rehab cheap and sell above market price then you are speculating and will soon learn your lesson.