It has nothing to do with loan limits in the secondary market, it's the contingent liabilities and effects on rations that need to be assessed.

You rational is causing you to make poor decisions, unless you are managing a social assistance program of some sort you are not rational in you desire to financially support a family that is not your own.

My rational was something like 1) the listing agreement expired in a week or so, 2)original principal loaned was 76k in 2004 3) had been marked down one or twice and was due for a markdown soon so I might as well take the 8-10k markdown and then ask for more.

Those contribution calculations and pro-rations should include the total amounts injected including purchase price, closing costs, rehabilitation and holding costs.The rehab money can be put into an escrow account and the "draws" can be administrated based on certain milestones in the  rehab process.  

There are two rules:1 - Only make offers based on the numbers you need, not the seller.2 - Don't rationalize rule #1...you'll lose.

@Jeff Upton - because investor's thinking is not universally rational or efficient :)

If you’d owe a lot if you didn’t do a 1031 you could always do a partial 1031 but every penny you don’t reinvest will be taxed, not a pro-ration.

There's a difference.2 - Don't rationalize a bad deal into a good one3 - Don't spend your seed money...use it to infinity though4 - Learn "How Money Works"...and what I'm saying here probably isn't what you think I'm saying.5 - Learn "How to Analyze Markets"...not just properties.6 - Learn how to, and then execute, a "REI Plan"...long term and short.

You can rationalize a year of NCF.

@Brandon HicksNormally SEC attorneys suggest to syndicate if the raise is $500k+ (to rationalize the legal fees) however, this sounds like a great opportunity to get your first GP syndication under your belt!