The Dunning-Kruger effect is running rampant in the forums.

My dad's mixed use property was grandfathered as it was built in 1890, before zoning laws went into effect here in the 1920's.

You'll want to be very selective but there are funds out there that return 10% - of course your principal is at risk in this scenario.  

What matters more is whether the borrower in question has the (i) time, (ii) contacts, (iii) experience, and (iv) ability to effectively communicate & package their loan request to banks & credit unions in a way that is compelling to those lenders. 

@Sushil IyerWith my experience, to analyze properties effectively, you can start with resources like MLS listings, Crexi/Loopnet, tax assessor websites, or paid tools like Costar and Reonomy.

You will have to do something unique to make it effective & useful to you... because it's always no pain, no gain!

With that said, we really know what works and what doesn’t, we have a strict process as it’s proven and are selective with who we take on as clients.  

Because you already invested and presumably can't get out, your brain will automatically be selective and tend to trust the positive information and ignore bad information.

@Jonah Gunalda sponsor selection is critical—if you are investing with first-class sponsors you’ll mitigate one of the biggest risks in the syndications space.Start with this book.  

Somewhere in the middle may be an LTR owner who is used to doing the hard work of tenant selection, routine maintenance, and rent collection.If that owner is used to doing all of that work to receive their monthly rent, would it be appealing to enter into a business-to-business lease with an MTR arbitrage operator?