They’ve already performed detailed due diligence on the properties included in the fund, the market, and analyzed the projections extensively.Sponsors will provide investors with thorough financial information to evaluate and evaluate prior to asking for financial commitment to the fund.

Higher contribution limits, participant loan option, no UBIT on financed real estate, to name a few. 

Seek professional advice from real estate agents, financial advisors, and mentors in exploring multiple avenues for finding your first property; Conduct thorough due diligence.Good luck!

But, will it be possible to secure another loan ?

I was just suggesting that it's not the great financial investment it's being sold as.

I would obviously be sacrificing hard cash flow though since I would then have two homes with two loans rather than one free and clear. 

Would depend on the loan amount size.

If the loan amount exceeds $1M, then rates are in the high 6's to mid 7's. 

@Namal Burman Sounds like you have an understanding of what you are getting into financially and location wise...go for it if this is something you are interested in and want to pursue. 

I'm sure that is true, because most mortgage companies aren't going to go searching for issues when there aren't problems - but in the truest sense of the word this is loan fraud and I'm just not up for it in my portfolio.I did hear from a friend of a friend type that she was able to close a subto with a small local bank somewhere in Georgia (property was also located there) because of a long standing relationship with the bank.