If an asset is throwing off a certain yield that is not commiserate with it's risk, then investors will then begin paying more for that asset, thus decreasing it's yield....or start paying less for the asset which would increase it's yield, until it was at the proper risk/return rate to produce the yield that is truly reflective of it's risk.The problem is novice real estate investors get the risk/reward correlation backwards.

I've built a $18M RE portfolio without ever having to do a syndication.I hope I answered your question properly!

In our case this was an annex built without proper permission, which limited the m2 that the bank would value the property against, and limited to how much space we would be legally allowed to use.

. - Won't work unless you REALLY know a market and have the proper connections!

Do you have the Capacity/Ability to close, do you have the Character/Credit to close (including relevant experience), and do you have the liquidity to properly provide enough collateral (are you injecting enough into the deal).

It’s so comprehensive that I’m compelled to give you a great answer, but there is so much to unpack that a full proper answer to every question may take longer than I have tonight.

There are just so many existing pipeline right-of-ways that you cannot physically find an undisturbed site big enough to be worth it near Midland proper. 

This would be my first STR so I also am personally interested in giving this business model a try to see if I do want to operate in this space longer term and want to do this properly. 

Make sure it fits your lifestyle. 

If P&Ls were manipulated or tenant histories weren’t properly vetted, that’s a serious issue and could form the basis of a strong misrepresentation claim.