The alternative is to save up 20-25% down and do more traditional investing.

In short - here are the reasons I pivoted to Real Estate Investing:All the benefits of Real Estate + growing STR optionsInflation raging at 10%/moCurrency wars and what or who will win them (Prec Metl or CDBC, etc.)Equities markets receive derivative pressures from credit markets and pressures on US dollarRealistic 10+ year opportunity in using Creative Financing, given monetary policies.Global disruption and impact analysis of COVID to businesses (small/large) and individualsWhat I was (originally) looking to get out of the program:Better understanding of Real Estate and it’s MarketLocally like-minded ppl that are more about collaboration than cannibalization (not reflective of BP in any way – this community is great too)Improvement in comfort level working in REI and learning “on the job”A community where I could find deals, connect with ppl for help and ask questions, etc.Business and Corporate Structure recommendations to accommodate short-term & long-term investment strategiesAnonymity strategiesAccess to vetted contracts for traditional, creative and gator (EMD) Real Estate dealsMy experience and feedback based on my expectations:Great original 6 week mentorship program.

In my experience, section 8 tenants can be a real pain and should be vetted more from a holistic perspective than from a traditional quantitative perspective.

How they twisted Gods word and used ceremonial laws and mans traditions than actually doing what’s right in the sight of God .

This is similar to how a traditional mortgage works when a bank requires an escrow account.

But considering we have to go with the traditional 20% down payment, we know we do not currently have the budget to get an STR that would stand out and have all the amenities that we would like to be able to offer and be in a great location.So I would like to ask for some advice from all the experienced real estate investors on BiggerPockets.Do we get in the game now?

I went through a refi last year with a traditional mortgage bank. had the same scenario, first appraisal came back super low, we argued the valuation and ultimately got nowhere. we decided to start over with a different lender, and got a 2nd appraisal exactly 16 days after the first one was dated, and the valuation was almost $80k more. sometimes starting over is all you can do. 

The key is to understand how to underwrite a syndication structured deal.GP/LP splits, acquisition fees, asset management fees, refi/sale periods..among many other things that vary when underwriting a syndication deal vs traditional purchase.Happy to share my model for underwriting these deals if you want to shoot me a DM.

In this case, we’ll use the traditional 70% rule, so 0.7 is plugged in.Formula: (ARV * 0.7) – rehabExample: ($100,000 * 0.7) = $50,000Why Is This “Rule” Critical?

However, you typically need to put down a lot of money upfront.Hard money loanCompared to a traditional mortgage, a hard money loan has a lower down payment—sometimes as low as 10% of the loan amount.