We were looking into them and the "models" we were leaning towards were between $30k and $60k.Pocket neighborhoods are great though.

So, yes it is a long-term cash play.My business model targets distressed properties that are in need of much rehab and therefore are not able to be financed by a traditional lender.

If you cannot make decent profit in a normal market environment, then chances are you need to look into your business model to find out why.

1) If the GP is investing a portion of the equity, would they be part of the LP or would the model include a place for GP investment?

Kelly I looked at recruiting agent for my firm years ago.At one point I did an active campaign and had about 45 agents at my firm at one time.I have found most agents feel entitled or won't follow the steps you tell them to be successful.They will skip some steps because they are lazy and want to "get rich quick" like the rest of the population which is why so many fail.If I add an agent say on a 70/30 split then I have to take time from my own deals where I make 100 percent to make 30 with them.The training and getting over their mindset takes so much more time than me doing my own deals.This is why I have only 7 agents right now.I got rid of the rest.Many companies try the 100 percent model but you get either new agents having no experience,part-time agents who are rusty,child support demands,irs tax liens,license lapses for education and or non-payment of dues etc.It is a huge headache to keep up with for a low return.If you go the other route you can train new agents for a fat split before they leave the business or train a select few agents that you want to feed leads to on your team.I just focus now on my own investment purchases and my own commercial listings.

I have a brother who has done really well over the last few years, so I've pretty much just followed his model.

I hate to say it, but yes. one of the scoring models is longevity of the creditor.

I think I would have expected the opposite.I really don't have an ax to grind, I have just been looking at RE business models and am trying to get educated.

With the NOI that I've calculated, and a hypothetical benchmark Cap Rate, This asking price would be outrageous based on the Cap Rate model.

Our business model is based on speed.