The purpose of these funds, so far as I can tell, is not to derive yield from direct investment, but instead use the rental projections to sell the underlying assets to risk-averse institutional investors (read the same pension funds and municipalities that got swindled during subprime) at inflated prices.Quick numerical example:Buy a house for $200,000 that rents for $2,000/mo.

An option price credited to the sale price is a financial interest in that contract that is based on or a derivative of the property value.

You should look through Ray Alcorn's article on deriving YOUR capitalization rate to get a more precise figure, but the analysis below should be a good first cut for screening purposes.

Vaishal Patel,Passive losses are derived from activities that are not pursued on a day to day basis.

Just the way you communicate with a borrower is governed by laws.Foreclosure is complicated and a long and costly process.Real estate finance is very complex.Reliable valuations cannot be derived from the Internet.Finance laws are very complex.

Say if financed at 20% down and 5.5% 30yr fix, is any rule of thumb / empirical way to derive cash flow and COC quickly?

I spend ENTIRELY too much time stressing and doing administrative tasks i.e. confirming our (ridiculous number) of monthly bill payments, fixing administrative issues deriving from issues on the part of my bill payees (constant), things of that nature.

Being in the business of" is usually defined by the degree of income derived by some activity vs investing.

I assume that all of these tenants derive all of their revenue from walk-in retail traffic.

It seems like a complete fallacy to rate something that doesn't exist yet AAA, especially when the company providing the underlying assets that derive the yield is a privately held company.