There are strategies that institutional investors use to approximate market rent by looking at neighboring multifamily.

@Mike Parlante, since you're in NJ, understand that the state recently instituted a STR tax.

Assuming that your lender isn't institutional:1) what contracts do you use for a lender that gives you a loan?

Wealth Managers become available, Commercial Lending Institutions will work with me, etc.In other words, building new businesses which may be even more successful becomes easier once you have proven yourself to others.

Hey @William Costello as others have mentioned the markets are scorching hot as a lot of the funds/institutions I work with are buying especially if it's a value add deal.

The large institutional wholesalers who have scaled have hired relentlessly.

At some point it is not worth it for a sponsor to do a deal.Also there is institutional money that will give out cash all day long but of course the terms can be tougher.

True hard money is asset based and not institutionally underwritten.

When we do go get financing on this from a bank or another formal institution, it's actually considered a purchase loan but... by the time we do this, we may only need to do 45-55% LTV since we paid the majority off through the installments.

Many of the institutional investors are the ones that end up with the liens due to he 5% penalty rule which is:  If you bid below 5% and above 0% you will get a 5% penalty.