Without that adjective, the GSI should be taken as the ACTUAL rents.Cap rate is the NOI / the purchase price, and NOI is directly derived from Actuals vs Pro Forma.IMO, NEVER run your numbers using pro forma, as it's too easily misquoted and it becomes another problem in your due diligence process; use the Actual Rents at the time of you offer.

They established an LLC for each individual and had a clearly outlined operating agreement detailing the roles of each party and profit distributions after the property was sold.I looked over one of these agreements and it was very formal.

This area has seen some truly hard times BUT lately there has been a ton of industry moving there.Amazon distribution warehouse built on the entire Pontiac Silverdome landUnited Wholesale Mortgage headquarters moved in and purchased a lot of surrounding landM1 Concourse Racetrack and Luxury Car Condos builtHas anyone else looked at Pontiac for a potential area for investment?

Amazon just announced that they are building a state of the art distribution center there.

@Mark CollinsWith Solo 401k plan you can contribute pre-tax and get a tax deduction now, the investments grow tax-deferred and but distributions are taxed at the time you pull them out.If the plan allows, you can also contribute post-tax into Roth and grow your investments tax-free, qualified distributions are also tax-free. 

@Carter JonesOf course, if you take a distribution from your retirement account you will have to pay the taxes and (likely) penalties.

Much of our success was derived from the BRRR strategy, we have gotten lucky and bought some property’s that were just miss managed.

Speculative investing in real estate is buying something with the hope or expectation that it will increase in value, and derives all or most of its returns from that appreciation alone.

How do they continue to receive distributions/compensation for being involved in the fund?

You could have two properties in the same market that are similar (3 bed / 2 bath - house) and based on the design, location, listing quality, amenities, distribution strategy, host quality, etc these two properties could perform totally differentlyAn example from my portfolio is in Scottsdale, AZ.