Real estate's diversification and wealth-building potential make it a solid addition to a balanced portfolio.This post does not create a CPA-Client relationship.

The notes, being in default had an unpaid balance of $3.2million.  

Additionally, I mentioned that I had sent them a small holiday gift card as a token of appreciation (which I send to all of my tenants) and wished their family a peaceful and warm holiday season.Your insights helped me craft a response that balanced kindness with maintaining boundaries, and I truly appreciate it.

These are also the banks that are more commonly relationship lenders and will allow your originations to out pace your balance sheet if you are consistently able to execute on the projects they fund for you.

It's a tricky balance, but the nature of a business that is growing.I think you would have made mistakes of similar magnitude if you went and purchased through a different acquisition vehicle.

With your balance sheet and cash, you can put together creative deals without giving up equity and without using your cash but you are going to need to find a market and product which has 7-8% cap rates.I invest in the northeast, Great Lakes area.Diverse economies with education, healthcare as the back bone and tech as growth.In your area, you’ll have to raise way more capital in the form of equity just to meet DSCR with the banks.

Quote from @Juan Ruben Cortez: I believe the funding fee is 0.5% of the remaining loan balance, plus maybe another $500 - $1,000 in lender fees. 

It's a balance of cashflow and wealth accumulation.One of the goals is to have tenants pay as much of your cost-of-ownership as possible (loans, taxes, insurance, etc.)In high-cost areas, any Class A or B property you buy will usually negative cashflow for the first 3-5 years, until rents rise enough to cover the negative cashflow + rising taxes & insurance.Investing OOS increases your risks because you may not know the market and you can't check on everything/everyone all the time.If you move forward with your buddies, HIGHLY recommend creating a solid Partnership Agreement!

However, the structure isn’t about charity—it’s about balancing returns with long-term community impact.Returns Through Cash Flow: Our real estate assets will cash flow, generating returns for investors over the first 20-30 years.Reinvestment for Sustainability: A portion of the profits will be reinvested into community programs to create a more stable tenant base and reduce turnover.Long-Term Value Creation: By focusing on economic development and housing stability, the portfolio grows in value over time, benefiting both the community and investors.3.

You should balance appreciation with cash flow.