If your accountant is unaware of this, then it maybe time to find someone who is more sophisticated. 

And you already know the ten or fifteen people in your network who will close out your offer in the first week.My big issue with syndicators today is that they don't point their marketing toward sophisticated investors who understand the risks and fees involved.

Just my perception. 

Sad but true statement, as this comes down to seller perception.

They don't have the capabilities to handle sophisticated accounts or much that veers towards commercial lines insurance.5.

I am glad to see all this relatively sophisticated analysis.  

Commercial real estate is a sophisticated endeavor and hopefully much more can be learned but I vote this post be deleted or at a minimum, the “scam” part be removed from main title.

This type of financing will typically look very different and more like a traditional commercial real estate loan.That means a DSCR calculated based on a full NOI and expense load (so inclusive of vacancy loss estimates, credit loss estimates, repairs and maintenance, utilities, management fees and more – in addition to the property taxes and insurance expense that are the only expenses factored in on traditional residential style DSCR loan financing).Additionally, the DSCR minimums are generally going to be higher (typically up to 1.25x), the loan to value ratios lower (higher down payments) and underwrite more sophisticated (which makes sense considering the size and scope of the property).Many multifamily investors for properties of this size (such as more than 11 units) can syndicate capital and have more sophisticated financial and entity structures – its definitely a different world once you get up here in unit count.In Conclusion – when you are looking to invest in multifamily real estate and finance your investment – make sure you have the unit count in mind before you start shopping – the unit range can have a huge effect on your options.

When you are forming all sorts of small partnerships with no real "corporate" backing and pooled asset base to provide security for the counterparty, typically you can't get a swap.right so one of this big group that brought swap is making huge win when rate is going up, i would not reveal their name, you are right it's not for everyone juice. but for us small LP, investing to those big group and the small newbie sndication, is just about the same.for swap, i read in pensford website and they are really sophisticated, leant tons about interest rate.

I feel that if both parties understand the risks; if real estate investing is their business, if both parties are sophisticated and experienced investors, and both decide the risks are worth taking, then subject to can be a workable tactic.