At most they'll get slap on the hand and it'll be back to business as usual along with the other "too big to fail" institutions.

After four years at a pretty highly regarded academic institution, I can confidently say that the most valuable asset I'm walking away with are the friendships I've cultivated over the past four years.

We thought this was a great deal, because fully rented, even with the 50% rule, it cash flowed $2,046 annually, with a cap rate of 8.66%, 13.42% cash ROI, and 17.93% total ROI.I just recently discovered the vacancy rate in this area is 17%.

We thought this was a great deal, because fully rented, even with the 50% rule, it cash flowed $2,046 annually, with a cap rate of 8.66%, 13.42% cash ROI, and 17.93% total ROI.I just recently discovered the vacancy rate in this area is 17%.

That, however, is when the institution is offering us the loan.

Lots of institutions bid at the last minute.This video I did in 2011 explains what I'm talking about. 2011 video explanation of my auction and bid analysis.I don't have a lot of posts on my Biggerpockets blog, so you can read through all of them fairly quickly.

I know from experience because I just relocated and had to make new contacts because many of these smaller institutions do not loan outside of the few counties they service.

If the mortgage holder (which I assume is a private individual, not an institutional lender) only wants you to pay off the face value of the note, why would you want to pay the appraised value of $250K?

That is about it.You may need to upgrade from a general insurance salesperson to one who is a little more experienced with more commercial and institutional type policies and clients.

What I don't get is how institutions dealing with numbers - the seemingly most logical of all things - so often can and do get it wrong.