I know on some level they must be thinking they're going to be on the hook for it, but who knows!

There is no reason to think that this will help you invest in real estate.

Quote from @Karen Closkey: I don't think it's a scam, but it's most likely a waste of your time.

Now I think they could all be on an UNSECURED note ..

I was thinking the same thing.

I would think that your broker would have some say in what you can and cannot do but I don't know the specific rules in your state.

But I guess a lot of you seem to think that extra cost is negligible if I am refinancing anyway.

You are getting pitched most likely because you are asking people to point you in the right direction instead of saying these are my two favorite options, which do you think will work better for me based on my finances and preferences.

I think we could all agree there are basically three answers:A) Stay the course - keep adding 10 bps for each year held based on stabilized market cap rateB) Take a little risk - use the current market stabilized cap as the exit cap tooC) Throw caution to the wind - use a cap rate that is less than the current market cap (*If you pick this answer what method are you using to predict a cap rate)Which answer would you pick and why?

The last think you want to do is to put leverage on one of them and then need a new roof or furnace.