But from my limited time in the game, I’ve found that my complete lemons are cash cows a few years later as market rent comes up well and my cap ex fixes a few years ago have paid off.

I’ve been in the real estate game for over two decades, and I’ve had my fair share of experiences with PM companies... some stellar, others not so much.Here’s what I’d suggest:Start Local: In OC, there’s a lot of value in picking a PM company that knows the ins and outs of the area.

The collateral is so so and some have preferences such as certain asset classes they will invest in, but generally speaking, you can obtain an equity deal with very little skin in the game. 

Views, indoor pools, game rooms and proximity to attractions.

I personally like one sponsor who has been through multiple real estate cycles without losing any investor money, puts very large amounts of skin in the game, is conservatively leveraged and has a very good 1031 exchange program.

For me, adding value is table stakes (and that helps with scalability).

Unfortunately most lack the balance sheet to obtain favorable financing, can't afford to put any skin in the game and fail to make a compelling reason for why the investment makes sense or to justify the structure they are seeking.

These types of loans typically require at least a 10-20% down payment, as lenders want to see that you’re financially committed to the project.There are ways to get creative but they still require some form of skin in the game. 

However, we typically use the FHA-203k loan because it involves a renovation, which I highly recommend if you are looking to really boost your equity and have the cost of the renovation wrapped into your loan with a VERY LOW AMOUNT OUT OF POCKET.I like the FHA loan, but honestly, the Fannie May Home Style is an even better product at this point because you just have to bring a bit more cash to the table 5% vs. 3.5% (w/ FHA), but you have a bit more flexibility.  

Dear Wilkes-Barre-Scranton area, my name is Gabe and I'm relatively new to the real-estate game- but I'm eager to learn.