- The biggest downside is you're paying two set of closing costs

This gives much better diversification protection across geographies, asset types, strategies, investment subclasses etc. versus putting all the eggs into one basket.The downside is that it's not for everyone, and a person has to be comfortable with turning over control to someone else.

The obvious downside, however, is that they’ll offer higher interest rates to compensate for the added credit risk.If you’re willing to submit to a traditional underwriting process, I’m pretty sure you’ll be able to find a rate that’s several percentage points lower than what you’re being offered now.

For instance, I thought their upfront fee is high but have been told that is reasonable.what is upfront fee...to source, due-diligence etc- (7%)what is your operating fee through the life of the asset. (0.5%)what is hurdle rate and split after hurdle rate- (10% and then 50-50 split of profits)do you have downside protection- (what does this mean?)

The only downsides are prepayment penalties come into play and closing costs are generally higher.

The downside was that commercial loans only 'lock' for 5 years typically.  

One downside to not having a 20% equity hold, per my attorney in Illinois, in the event we miss a payment (we haven't and hopefully never will) the owner is able to actually use the eviction process rather than a true foreclosure. 

But the downside if I refinance is that it will make the lower profit for this rental fixed for 30 years. 

Becoming an S-corp has some downsides including additional tax prep fees, payroll processing fees and lower social security income in retirement. 

We've found it has superior reporting features, integration features, and is overall more efficient to work within than other REI-specific software.The downside is QBO is not set up for REI so you'll need to do that or work with an expert to ensure it is set up for your business appropriately.