Keep in mind that the "counter" is not a counter at all in the traditional sense. 

He believes that a majority of people that live in this area, especially those who are single, dont have the down payment/1st/last month rent for a traditional apartment.

Of course the only thing it really did was make it so financially stable people with high incomes now struggle to get a traditional loan without putting down insanely high down payments, paying points, and providing 1000 pages of documentation for the earnings to mortgage companies. 

Traditional lending sources won't be available in this case as title is today.  

Student housing should be compared to student housing and not so much to more traditional real estate.  

This undoubtedly wins business from conservative, traditional family-values types.. but on the flip side of the coin, it really ended up alienated a segment of customers: https://en.wikipedia.org/wiki/Chick-fil-A_same-sex... 

I just got a email from Wells Fargo confirming what a banker that I could get funding for my deals through my business from a traditional lender.

Smith  take your large sum of cash and deposit it in a local small community bank get to know your community banker and then set up credit with them... won't go against your fico and they will be there for you in the long run... best rates and you don't get killed with junk fee's like traditional lending... long term relationships.. and by a lot of money I would think mid 6 in cash would get some small commercial bankers attention.

If you cannot qualify traditionally, then hard money lenders can help you pull out some of your excess equity, but the interest rates will be higher than the bank rates and the loan-to-value will also be lower.

Keep in mind the people who own 2-4 unit building often have a hard time liquidating them as traditional home buyers are not interested.