Smaller banks are far more likely to consider your project versus larger banks like Bank of America.

Currently own 6 Multi-Family buildings in various neighborhoods.However, I feel the majority of Investors don't really understand Financial Math so well.Price is only a problem when you don't have trustworthy partners.My response to people who say that NYC is too expensive is to give them a financial lesson.Let's say you are buying an Investment yourself for $100k and we know it will be worth $200k in 5 years, which is very typical in places like NYC.Your return would be 100%.Now, if you added a Partner since you may only have $50k versus $100k, we need to find out what each partner will Return on the Investment.Since the Building is 1/2 owned by each of the 2 partners, when it sells for $200k, each partner gets $100k.Since each partner invested $50k each, it still is a 100% return.The important lesson here is that ever Investor needs to calculate the Return on ANY INVESTMENT at ANY price.

I admit we're definite totally new to this on the legal/real estate side versus the construction side and trying quickly to catch up.

Do you approach it differently if you KNOW they are tenants versus owners?

@Carrie Gulledge I'm with Thomas S. on this one, running checks and getting into the application process will only give this guy something new to be offended about, and then it will be more personal (rejecting him based on his history versus just that they happen to work together).Sorry you're in this situation, hope it smooths over!

@Daniel Jarvis this is relative to your area and the property type and condition...I am really conservative on properties that need little future repairs (new roof, new appliances, etc.) versus a property that require some guaranteed future repairs.

This varies by state and jurisdiction and we use  experienced, licensed real estate attorneys to handle it either way. 4)  We also originate CFDs when we sell houses versus a traditional sale or even owner financing.  

Great response and I appreciate the examples and your opinion on cash flow now versus a pile of cash in 30 years. 

One of the apts was a 2 level apt, but that did not conform to the Certificate of Occupancy that I later pulled from the Buildings Dept.After I took possession of the building, I immediately threw together a kitchen on the floor which was missing one in the 2 level duplex apartment.Then I called for a re-appraisal in order to take out a second loan on the property.The results of the 2nd appraisal was $400k more because it had to Comp against 4 Family Buildings versus 3 Family Buildings.When you have enough experience, at least in large Metro areas like mine, and get to really know what goes on, you start to know that even things like Appraisal Comps are inaccurate.This wasn't the first time it had happened as well.Other cases you will find that an appraiser Failed to know that a Comp was sold to a relative, which should have been throw out.There are a lot of these kinds of inaccuracies.HOWEVER, if you can start to understand how Appraisals are done, you should start to learn about the inaccuracies and take complete advantage of it like I did above.Appraisals also contains 2 other analysis other than just Sales Comps.

It seems to come down to arbitrage ("pocket the difference") versus commission as the only tangible difference that I can identify (you know, aside from the pesky legal stuff like "is this legal at all?")