THEY ARE NOT.There are many investor funds that were started out to deploy money hoping for the S and L crisis of the 90's.That scenario never happened so you have a bunch of money waiting to be deployed for unrealistic returns.The fund parameters have to be adjusted if they are going to purchase anything or will just have to return the money.Some fund managers are going from prime urban core markets to secondary suburban markets and tertiary rural markets to hit a higher return.I haven't seen 20 to 30 percent going in so in my area that is a pipe dream.

There is still a lot of "adjustments" that will occur in the economy.

This would be particularly true if these were to provide a risk adjusted yield exceeding any comparable investments (i.e reinvesting the proceeds into another property).- Charles

It adjusts every Sept.

That is...unless my adjustment on my notes is very near term and happens quickly.

We are going to talk with them tomorrow and may adjust our offer, or we may press forward with the previous offer minus commission.

According to IRS you would base the depreciation on the lesser of fair market value or the property's adjusted basis on the date of conversion.

Versus, set up new LLC with myself as guarantor right now (local bank), fixed rate 6%, adjusts every 3 yrs amortized for 25 years 1% origination fee now no prepayment penalty and no fees when the rate is subject to change every 3 years (will have loan committment Monday).

Unlike an appraisal that is done to specific standards that all appraisers must follow.BPO requirements can often dictate that the agent must use certain kinds of comps, can't use other kinds of comps, and can or cannot make certain adjustments.

Know what your repair costs will be and make adjustments to your offer price accordingly.