He told investor to invest at ground up dev. while cap rate is below SOFR/interest rateb) His project is like 75% LTV with 7.5% fixed and purchase at 3%-ish rate LOLc) well at least he's not using floating, but still, asking LP to invest at ground up dev is crazyD) you only one chart to understand CRE, buy only when everything is streamline, buy when cap is declining after period of stabilizaiton , buy when fed rate going down or stable. 

Hi Scott, consider USFR for zero risk cash, earns 5.4% holding 8 week Floating rate note US treasuriesor for mild risk cash, consider BKN - BlackRock's Muni fund, earns 5.6% tax free, which for you would be >9% tax-equivalent yield, and if rates fall, the BKN etf will rise considerably, which though will be capital gains taxable :(, It holds intermediate term Municipals that are all GO, general obligation, so they can always tax us dumb schmuck citizens to pay off the notes instead of defaulting, so low risk but not zero risk for cash. ie (Orange county '90s)Inflation has already resolved, the 3 month trailing core PCE is at 1.5%, well below FEDs 2% target, so they will likely start cutting soon as the 12 month trail falls in line, that's why Powell changed his verbiage so much last Wednesday, and FOMC minutes speak of 150 bp cuts before the end of December as their expectation per their Dot Plots, the only question remaining is consumer spending,(>60% US economy), if falling like McDonalds/Starbucks/Uber saying then unemployment will accelerate and then possible recession, then 10yr yield falls even more, and bonds values would rise like Mike just said above.

Floating the concrete.  

Mello Roos are bonds that are floated to do off and on site development and then added to the tax bill. there is also 1915 act bonds etc.. if there was not the ability to float bonds CA would never have developed as it has as the up front captial for major improvements would have been a major stumbling block..

Floating rate debt is a ticking time bomb on them.  

Quote from @Robert Frazier: It's a banner week for our fledgling development business.

Do you have any proof that they do this or do they just do it over the telephone once they receive someone's initial investment and see how it floats?

Active real estate investing doesn’t seem to float my boat.

The new buyer may have enough money to float the mortgage till this is over or they may offer the non-paying tenant cash for keys, who knows but give it a shot for 60 days to see if you get any offers. 

The only thing that spreads faster than a wildfire in a 100mph wind is everyone's "expert" opinion.I think people visualize an amber quietly floating through the night sky like in an old Lassie movie.