They'll tell you 80%, but then later in the process, do a 5% haircut. 5-10 properties are more risky than 1-4 or 10+ because there are fewer buyers and these properties use residential DSCR ratio instead of commercial.

Moving forward blindly on that deal would have put our investors money at risk, which isn't an option, so WE took a $60k haircut to prevent that.

S&P500 needs a 50% haircut.  

Joe its all about NPV  and rate of return for investors.. either way your going to take a pretty big hair cut out of your equity to do what your wondering about. 

The broker giving advice is akin to asking the barber if you need a haircut.

I told her I wanted a haircut , not a date.

I will take the haircut/dilution risk, go smoke a bunch of "hope-ium" that they can squeeze blood from this turnip in 3,4,5 yrs from now...If not, such is life. 

If you said the property was valued at $200k, then 2nd position may still bid in an attempt to run up the numbers depending on what kind of haircut they're looking at. 

My sacrifice… no haircuts and no fast food. 1 job full time, 1 full time side hustle. 0 debt at the time other than student loans.

And even if the company survives you may get diluted or take a haircut in the recap.