Private money lenders are a key component in the fix-and-flip market, facilitating a dynamic and fast-moving segment of real estate investing.

Hi @Guy Idan, like others in this tread said, is important that you "vet" the Syndicator (aka sponsor) - every component of the syndication is important (the property location and the local economic drivers, property class, the loan type, property management company, the sponsor, etc.) but I would say this is more as a bet on the jockey than on the horse.

Here's a case study on a 6-unit apartment building that shows just how much you can save by breaking down your property into its components for faster depreciation.

Meanwhile hardly any emphasis is placed on the loan administration and even more importantly the relationship component of lending.Far too many investors, particularly those just starting out, are being conditioned to seek out the “easy” lending choice rather than invest time and energy required to cultivate meaningful relationships with lenders who truly value the borrower/lender relationship and are interested in assisting you grow.

It appears you are focused solely on the financial components of the project without understanding the insurance and liability factors of self-performing the project in the manner in which you propose.

This coinvestment is what mitigates the risk of the other party taking risks that could be a detriment to the investor.

For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions.

But yes, if a lease contradicts the statute, and the tenant relies on it to his detriment, the LL could be held to the lease provision.

As such, is the sponsor going to sell a deal into the free market and lose the added efficiencies on their PM side, or do they hold longer (potentially at the detriment of the LPs) to continue to help build scale?  

We've made mistakes along the way, but nothing so detrimental it put it us out of business.