FHA loans are higher profit, so some places make their LOs shove everyone using any form of down payment assistance into FHA, the idea being that generally these folks aren't sufficiently sophisticated that the consumers will understand the difference.

I realize that you are looking for some sort of IIR or COC but I am not as sophisticated as that yet and honestly I'm not too sure that completely applies to our situation all the time. 

I have a lot of confidence in mine because it's simple, understandable, and yet sophisticated.

The reason I do this is becausemany times sellers are not as sophisticated as buyers and when they see a whopping amount being deducted from their proceeds at closing they can throw fits or back out of the deal.I got sick of this 7 years ago.

@Kyle Mitchell Most non-sophisticated investors mentally do AAR when calculating returns.

If you are getting a lot up in the Oakland hills on a tiny street keep in mind the logistics of getting machinery up there to develop.

a 40 acre timber track could have 1 to 1.5 million in net proceeds to owner after costs.Many owners of timber in our area are not real sophisticated. 

@Aaron Mazzrillo  or as one of my partners does ONLY buy and control the rights.. own no machinery or when I did timber we owned NOT one piece of equipment. the ultimate in wholesaling

Sophisticated investors).Good luck!

The proper way is to issue a prospectus and offering memorandum and to limit your investors to accredited ones, or at least sophisticated ones.