@Candace PriceA lot of factors go into the rates provided.The asset, location, your net worth and liquidity, your experience, your SREO, the property financials, your relationship with the bank, your down payment, etc.Assuming you’re good on all fronts. 3.5-4.0% wouldn’t be out of the ordinary with some IO on the loan.

The concept of the integrator visionary relationship is one that will finally answer the question in your head, Am I the crazy one!?

@Chad Rohlfsen, although this does seem like an incredible opportunity financially, I'd caution you to take it slow and start developing relationships in the Real estate network within Des Moines before doing any investing.  

If you search public platforms for opportunities to invest, you will find mostly 506c offerings and they will come with those restrictions.Conversely, a 506b will not allow the syndicator to advertise publicly, but will allow them to accept accredited investors and up to 35 non-accredited investors as long as proper conditions are met and prior relationship between sponsor and investor is established before an investment is made.

Relationships are key (to success and happiness). 

Start with the capital you have, move forward with the project, build the track record and continue establishing and building relationships in the meantime.

I think it is very important to build relationships with these wholesalers over time, to a point where if something is wrong with a property you would want them to disclose with you.

That way you can dip your toes and develop a relationship with a provider before doing something that involves more risk and could really benefit from a bit more know-how. 

I also had a great connection with a contractor I had built trust with and he was flexible on how we paid him, so he was taking a risk but trusting our relationship.

For your option 2, I would try to go with a partner I already knew and had a trusting relationship with.