With many REITs trading at low multiples of FFO and liquidating assets at close to if not all time highs so they have the ability to buy into new real estate assets at a much lower buy in it bodes well for future growth long term.  

That takes skill and knowing the market too.

Same goes for stock trading!

@TJ VerdiglionePut it in simple terms - say you owned a first position note that had a balance of $400k on one World Trade Center building which has a value of $5B.If it forecloses and sells for $5B, you get the balance only (400k) you don’t get $5B.

@Jonathan FarberBeginner skill level: 6 months rent in cash.More experienced: 3 months rent in cash.Decade + and have been through multiple up/ down cycles experienced: 3 months costs in cash.

What’s your trade?

They don't have the credit, skills, connections, even the confidence in their abilities to buy distressed rentals and work on them on their own. 

The less you put down, the better your cash on cash.I would also look at what type of cap rate you are at and whether this property is trading near a market cap rate, since this is more operational in nature and not reliant on financing.IRR is also important, as it takes into account the time value of money, but there needs to be a capital event (sale or cash out refi) to make this equation work.

This is where the skill comes into play being a REI. 

i feel like me giving him my undivided attention and actually implementing the advice he gives me is somewhat of a "trade off" in his mind.