You'd really take a haircut on selling that note!

Certainly over the last year the Ringgit has fallen from a roughly stable RM3.1 to over RM4.1 per USD last week, or about a 33% haircut, and counting.Long term, both oil and interest rates have never shown anything but volatility.

With NPN's, on the other hand, I would be intentionally investing into the situation already knowing that my exit strategy may be to force a family out of their home.That still leaves the door open to the idea of purchasing a NPN at enough of a discount that you can take a haircut on the balance, thereby reducing the mortgage payment to something they can afford, and still make a nice profit.

This means that the institutional LP will have something to say about the size of the fee and they can force a haircut if you are charging more than they want to pay.As a sponsor, I see no reason to give up any promote split to the capital-raiser because there are tons of equity consultants out there that work off of a small percentage of capital raised (charged to the deal not to the sponsor) so giving up a slice of promote would be out-of-market.  

How big of a haircut to your gross rents can you afford with this property? 

In some of the deals I have been in if someone wanted out early it was only sold back to the other investors in the deal and at a hair cut.

Look at the forecasted income in the year of maturity, give it a haircut just for safety, and then apply a conservative cap rate. 

If you get burnt out, you will have to take a large haircut to unload your properties or wait a long time to maximize value.

Kinda like asking your barber if it's time to get a haircut.

Not only will I be saving about 3 times as much as it cost per year, but now I don't have to go when it is convenient and spend 30 minutes driving to a Great Clips for a 5 minute haircut.