Because I can look at it from all sides now, I have a better understanding of the mentally of each player in this real estate investment game. 

In other words, if most of the market is priced like you are mentioning then that is probably what other similar properties have sold for.To answer your last question... many people make some really poor investment decisions, or there other investment option is to purchase a CD at 1.2% annually.

Don't hate the player -hate the game!

My hard money lender has now decided that they are going to be a player in this deal.

Sell points to Seller, you will get less than 1% interest if you buy a CD, I am offering more than double that, plus you get 80% of the money now.

So let's just round it and say that you will probably see a 20% return on this investment.Not shabby at all in a world of <1% CD's!

Especially some of the turnkey players sell their deals based on cheap financing and people are paying as much as 20 grand over retail based on leveraged cash flow.

Age is a factor, family is a factor, risk tolerance is a huge factor, etc.Honestly, if you are posting this question on forums then to me it sounds like you have no idea what you want to do, so my recommendation would be to put it into your savings (CD's or bonds) until you determine how you want to put that money to work.

Because people know that I am a serious player.

At my local REIA meeting, there was a sentiment from the more veteran players (particularly the mortgage brokers) that Fannie MAE/MAC will change mortgage allowance from 4 to 8 soon to help relief the number of foreclosures on the market.Does anyone else have the same sentiment or has heard similar from their REIA?