As Chris and Justin note, the old adage of "vet the jockey (sponsor), not the horse" does not work anymore.While the sponsor can definitely screw up a deal, investing with the "best" sponsor is bad deals is a more surefire way to lose money.  

@Jason Pollard is a great resource and should definitely reach out and chat with him.  

If your cash proceeds is $50,000 or less definitely don’t do.  

As far as getting non pays out, definitely have to be very strict on that.

Definitely a more niche type of product, but, incredibly useful, especially across the Midwest where many rental properties are less than 100k.

People look to Detroit for cash flow, and you can definitely find it there, but the median price has also doubled in the last 5 years.I would not be surprised to see it double again in the coming 5+ years too.

@Jay Hinrichs Developments are definitely BIG money makers, but thats also reflected with the risk associated.That's why these projects take so much time and capital, but if you make the right judgements for project selection, and do all your due diligence, it'll turn out well.

I don't think this will be a total deal breaker, but definitely not the money maker I was anticipating.Great information on this thread, any other thoughts?  

Anyone happen to know Einstein's definition of insanity? 

Definitely noticing rate drops.