I find that most investors want to see a property's projected IRR (internal rate of return) over the anticipated life of the deal.  

., again) is for a fund to buy up 24 multifamily units located in Drexel Hill/Upper Darby, Pennsylvania. 12% preferred, then 60/40 split (60 to investor)Internal rate of return in excess of 15%Minimum cash-on-cash return of 10%1- to 6-unit multifamily buildings5% loan at 70% LTV, amort over 25yearsTrailing Cap Rate 8.63%These are a few of the assumptions that I am I am having a problem with:1.

They have some internal formula to determine what price they market the property for, as well as how long they wait to drop the price.

Since they deal with the public, they often have or want to be more conservative than direct lenders who fund their loans internally and possibly hold their notes.

randy and charlie france have a pretty good course on subject tos.

Then do an internal rate of return analysis testing how the property would perform if you sold it in any one of those future years.

Here is a more indepth explanation regarding holding requirements that I copied from our website: 1031 Exchange Holding Guidelines for Like-Kind Replacement PropertyWhile the Department of the Treasury Regulations and numerous rulings make it very clear that the Investor must have the intent to hold his property for rental, investment or use in a trade or business, they fail to define exactly how long an Investor needs to hold his relinquished or replacement property in order to qualify for a tax-deferred like-kind exchange pursuant to Section 1031 of the Internal Revenue Code or Section 1.1031 of the Treasury Regulations.

I agree with Ryan's approach of being balanced.Credit will allow for more growth and leverage which = more ProfitAnd, Cash lowers risk, makes banks feel good, and it also boosts your internal rate of return which makes your business strong.However, I go with carrying the note rather then rent because the financee takes the responsibilites and expense of the landlord as stated in the Warranty Deed.

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I always determine the lender before I approach them with a deal because it might seem completely reasonable to you but is against their internal policies and therefore will be much harder to negotiate.