You are spot on with your perception of California.

Hi Patrick, A few things to think about:You'll need to find a property management company who will manage any deal that you buyYou'll need to meet the net worth and liquidity requirements to qualify for a loan You'll likely need someone with experience to also sign on the loanTypical structure between the LP and GP is a preferred return  and a 50/50 to 70/30 profit splitYou can have up to 35 non-accredited, sophisticated investors with a 506(b) offering, as long as you have a pre-existing relationshipAlso, do you have previous real estate experience?

it really depends on the sophistication of your sellers..

And that's where syndicators like @Omar Khan, and @Alina Trigub and sophisticated MF landlords like @Sean Morrisey can be wealths of information.  

He has 2: one that is designed to teach you how to be a sophisticated investor and a second program that is 1-on-1 coaching (not sure if you actually work w/ Brad or a member of his team). 

I get it .. that works.. and probably more complicated and sophisticated than 90% of the their borrowers will even understand.. most borrowers just show up and sign were they are told :) … So now that we get how they can possibly do this.. and again that makes total sense to me.the challenge for you will be getting something that fits in their box.without you wasting 600 dollar submission fees and appraisals.. 

Those C and D class properties are best served to sophisticated local investors. and above all if an investor cannot scale to five properties at the minimum in a two year period. they should not be OOS.

Some sophisticated lenders are now using the debt service ratio instead of DSCR after 2008.

Again, I was able to capitalize on the overall perception of investment properties at that time.

So there’s extra liability on the GPs when allowing sophisticated investors in.