The drawback is you need to build trust and relationships upfront.Both have their place, but private money tends to offer more flexibility, while hard money is more structured and accessible if you lack personal connections.

A good real estate attorney can help you weigh the risks and structure things properly.As for markets, it’s smart to focus on fundamentals rather than personal connections.

The seller will always retain the equity and would receive annual distributions - and could structure the agreement with an exit strategy that makes them comfortable. 

I need structure and spreadsheets rock!

And actually, if you structure things properly you shouldn't have to worry about the tax implications at all.

Are there many REITs that currently regularly engage in this type of feeder based structuring for a investors?

For maximum tax efficiency, consult a CPA to explore combining a partial gift and sale or structuring the transfer to reduce property taxes.

Start by talking to a cross-border CPA and attorney to handle taxes and legal structures properly.

You could structure the deal as an installment sale or a lease option so the property owner doesn't see a large capital gain tax payment for the sale.And good on you for helping out!

I was always hesitant about the upselling into various structures and services that are available for far less expense (e.g.