"Sophisticated investors” have sufficient knowledge and experience in financial matters, are capable of evaluating the merits and risks of the particular investment, and can bear the economic risk of the substantial or total loss of the investment.The drawback of a 506(b) offering is that the offerors cannot conduct general solicitation of their fund.

@Alejandra Corona - What bearing does the fact that LLC owns the property has on whether you should buy it or not?

If the powers to be are pushing the area, it's a matter of time as it will likely happen if they are heavy hitters, run with them, not against them. :)

Scope of work is…Move a couple bearing wallsHang 1/4" drywall on all remaining wallsUpdate all bathrooms (4) and kitchens (3)All new electricalForced air through out the house (3 flat, 5500 sq. ft.)New RoofWasher/Dryer in each unit (hook ups needed)Refinish hardwood FloorsThat's most of it.

—In all criminal cases, contempt cases, and other cases filed pursuant to this chapter, if a party has sold, leased, or let real estate, the title to which was not in the party when it was offered for sale, lease, or letting, or such party has maintained an office bearing signs that real estate is for sale, lease, or rental thereat, or has advertised real estate for sale, lease, or rental, generally, or describing property, the title to which was not in such party at the time, it shall be a presumption that such party was acting or attempting to act as a real estate broker, and the burden of proof shall be upon him or her to show that he or she was not acting or attempting to act as a broker or sales associate.

The properties will be structurally sound, a good location, and a good surrounding market but are poorly managed that are in need of minor cosmetic repairs such as, out dated inefficient kitchens, bathrooms, appliances, old windows, old inefficient lights, high expenses, old non-separate metered heating and cooling units, along with ugly curb appeal/landscaping.We will not purchase commercial properties that have the following issues:-A structural problem (interior bearing walls, foundation & exterior walls)- A significant environmental issue (underground leaking tanks or mold)-A neighborhood that has an oversupply of commercial properties and have a vacant rate of more than 15%.

Lenders will "account" for expected expenses to determine your cash flow, but that has no bearing on where or how you save your money......or spend it. 

@Aristotle Kumpis@Brent SeehusenThere is a forecaster at UCLA/Anderson who has identified a 12 year cycle for LA. 7 years bull followed by 5 years bear going back to 1975.

I think the clients would be nightmares because they wanted a price that the market wouldn't bear and stuck to it long enough for the listing to go. 

Totally new to the process of buying property so please bear with me.