Hi Lee,It's what Is in the leases for the tenants.Some of the corporate tenants have a cap in the lease where they are only responsible for a certain amount of CAM re-imbursement and then it does not go higher.Could you imagine if a building went from 90% to 50% occupied because of owner mismanagement??

Basically, it is a revolving line of credit secured by cash and securities in a brokerage account.  

I imagine @Brian Burke is the correct.The answer probably revolves around the large bonus depreciation due to cost segregation in year 1 of a syndication.

@Cameron ChambersGood morning Cam,Not all homes and neighbourhoods are suitable for BRRRR.

You cannot use a revolving credit card to use a down payment it must come from a liquid reserve, asset or open end mortgage like a HELOC.You will also be required to have and show assets and in most cases a PITI reserve of 3-6 months depending on the loan size and program. 

I'd say in real estate, like other businesses most of the profit revolves around solving other peoples problems and providing general value to the community. 

On the other extreme, you just happen to have a few associates in real estate that you lend money out in a revolving door and are not acting as a business in this venture - just purely a loan, then perhaps it is just portfolio interest income. 

On the way in, we are trying to apply some due diligence to make sure they will be successful tenants - which is what all these conversation revolve around.  

There are many underlining reasons for this and they all revolve around one word...location.

Terry, If you can snatch a subway for 100k at 10k a week (make sure last 4 years of tax return and combo report show this), at 3500 including cam charges, this is a great deal.