If youre saying that the cost of the loan are approx $100k for these figures, then yes, that is ridiculous.

Even if the sponsor lacking knowledge and experience can raise capital through syndication, their life will become a living nightmare of lawsuits, hostile social media posts, public ridicule, accusations, legal threats.  

Part of the problem here is that fundamentally people don't understand what happens when you pay extra principal (ie. pay it back early) and I think that's a terrible, ridiculous shame, so here's a little experiment for anyone who's interested. 

Prime is ridiculously expensive.

In years past it was pretty ridiculous how often threads would get pulled when any little argument popped up.

Those who sought government employment for lifetime jobs, short work hours and ridiculously high and inappropriate benefits, are outraged.  

Insurance in Louisiana has been ridiculous over the last three years.

It’s a completely ridiculous and obscure law to me, and definitely ruined my day!

(Now that's assuming that the price is not just ridiculously high :-)I have a buddy who is always about the prices when choosing service businesses.....and guess what?

Although I am finally cashflowing and have recouped the cost of the initial 5-6 months of low occupancy, my concerns regarding expensive construction/rehab still remain.  45k for rehab is ridiculously expensive.