Experts say it can be risky for an investment fund to operate this way, since it may require ever more participants to be brought on board, rather than making money from its business.More than 60% of RAD’s operating expenses in 2020, the most recent period for which the company has released audited financial information, consisted of asset-management fees and other payments to a separate company owned by Mendenhall and other RAD executives called RAD Management LLC, according to an analysis of the financial data.Those fees and payments amounted to more than $730,000 that year, RAD said.ADVERTISEMENT“We have limited operating capital, few significant assets and limited revenue from operations,” RAD wrote in the January document, which sought to raise up to about $58 million in new funds, for a total of $75 million of company shares.

It gives you the flexibility kind of like a credit card that allows you to borrow a certain limit and withdraw funds as needed.

there just aren’t many sold properties in the neighborhood in the last 3 months and even out to 6 months is limited.

RE is always changing and if you have only one niche then well your limited in opportunities and subject to the conditions that exist at the time for that strategy.  

And to really take care of your mom use your annual gift limits to gift back to her the rent she pays. 

Thanks again for your input, and I'll probably reach out as I get further along in the process.Hi @Edward Zachary Samperio, the regulations aren't that difficult and I'd be happy to give you a quick rundown about the density limits, hotel occupancy taxes, permitting, etc.

Yes, this comes with some risks and limitations and this strategy is not for someone without any reserve as it will put them in a very bad financial position.Thank you

Sometimes the tenant just doesn't know about them or their situation limits their ability to apply.

They don't have to be complicated or expensive to set up but can help limit your exposure and shield other assets in the event someone wants to come after that.

Most suburban cities have VERY limited lots and most of those are zoned R-1, meaning only a single-unit house can be built.In the City of Detroit, it's cheaper to buy one and rehab than build!