Unfortunately the public perception in the last 30 years changed from building security through home ownership to building wealth, and that wealth was not what it seemed.

Will a perception be there that an LLC was formed for ::gulp:: decreasing tax liability dishonestly, instead of creating wealth?

Hey guys,Just wrote a blog for Bigger Pockets on this exact topic where I share my perception on the different classes:http://www.biggerpockets.com/renewsblog/2014/06/28/abcs-real-estate-asset-classes/Thanks and have a great day.

And although I am hardworking, intelligent, creative, thorough and intuitively perceptive , I am (temporarily ) unsophisticated with this business, and I'm putting in too much trust in someone I really don't know.  

Is my perception accurate, or am I missing something?

Massive down payments to create the perception of an artificial equity position or the "down payment" going into a reserve account held by the lender backed by an insurance policy that would facilitate X number of payments on the buyer's behalf in the event of job loss, disability, etc.?

Guess it's based on the perception that borrowers are desperate (they may be) but that doesn't mean there is a deal there.

Glenn, your comment about self perception made me laugh!

Talking to a few other local investors, they kind of had a negative perception of that idea because they had seen it where the investor can just walk away but the homeowner is stuck with a clouded title and then ends up going into foreclosure. 

Now even if interest rates go up in year 10 it probably means that rents  are also going up so even at a possible higher cap rate the "value" can be higher since your NOI will be higher.BUT, the main thing to realize is that cap rates are based on the market's perception of value of NOI and all cap rates are is a means of expressing that value.