I’ve been wondering that same thing.Seems to me when comparing candidate investments, why would I pay more for an investment with risk and work (5% Cap multifamily), than a risk-free passive investment (5% CD or T-Bill).Note that going from a cap rate of 5% to 10% is a 50% drop in price…that’s significant…easy to see why a seller isn’t willing to give a higher return.I’ve asked the question before and gotten answers like it’s because investor borrowing costs vary, and you must consider future rent growth and appreciation … I guess if you have low borrowing costs and are optimistic about the future a 5% cap rate makes sense. that's just a bunch of bull from agents and gurus trying to keep their game going... of course price should drop 50%... say today the commeercial loans are at 7%, and cap should be 2% higher to make the risk worth while, so call it a 9% cap.patience... this bs market needs cleansing... and when the time comes, it will be easy picking.no need to play the hard game... my friend

Actual real estate or hard mo ey loans involve a Promissory Note and a Mortgage/trust deed document securing the  loan with a lien on the house....not done “investor agreement”.

I've seen a lot more interest since the last week of January than I did almost all of H2 2023 combined when I first took a (distance) look.

But cash out is different  Hey David, Yes, it was a short-term rental (STR).0.74 acreageThe property was marked as rural on the appraisal.1007 form not utilized 75% of AirDNA data was used for determining market rents.The potential loan-to-value ratio (LTV) for the cash-out refinance could range between 70-80%.Let me know if you like to take a look at the property.

So if they are earning 5% interest on their loans, then 1.5% of that should be withheld and paid to the IRS, giving the lender a net interest rate of 3.5%.

Then did a 20% down Commercial Loan.

Last night I got an email from the loan officer telling us the underwriter says the loan looks like predatory lending and raised the rate by 5/8 of a percentage.

Dodd Frank will apply...see below.Not More Than 3 Properties Exemption Any person or entity cannot provide seller financing to an owner occupant more than 3 times in a 12 month period without using a MLO (mortgage loan originator).

AKA Work-ready.I purchased the home with an FHA loan, and my original contractor (as required by FHA otherwise I wouldn't have used one) underbid the contract not understanding the inflexibility of such a loan.

Getting into a syndication now, there is a possibility of a larger market correction coming soon due to rates staying higher longer and all the floating rate loans that were placed in 2021 and 2022.