Right now there's huge concentration, but as this continues to build out and we see north of the high 30s GW by 10 years from now it'll be almost a requirement to keep some type of locality based risk assessment and to diversify. 

Plan is to hold as long as my IRR is higher than 10% What made you interested in investing in this type of deal?

Typical cost for the setup would be in the $15,000 range which would include production of the Private Placement Memorandum, Subscription Agreement, and Operating Agreement, Investor Qualification Forms, as well as filing Form D with the SEC, and state “Blue Sky” filings in those states where your investors reside. 

And there you are in luck because you can purchase any type of investment property anywhere in the country and defer all tax as long as you purchase at least as much as your net sale. and use all of your proceeds from the sale in the purchase. 

I did an "LP" type small investment $200k.

You can generally go up to 75% LTV on these products so long as the anticipated PITI is 1:1 with the gross rent.

Are you still looking for this type of deals?

What made you interested in investing in this type of deal?

Do you mind sharing the name of that type of loan/lender that allows you to have the seller carry on a second position?

Risks: rates go down and you have to pay a prepay of 2 or 3 %; you have to sell and pay the prepay; rents decline & you can't make the payment like any other type of loan; cost upfront a little more than conventional; need to find experienced broker licensed in the state where subject property sits; servicers are bulldogs.