The sponsor will sell a tranche of the loan - say $900k to an investor at 9% (some will call this a hypothecation or a partial, or  a participation agreement, - which it is not a participation because it is not Pari-passu).the sponsor will then take a junior position on the loan (but technically still a first just the b piece).

For those actively investing in the Denver Metro Area, what has been your biggest obstacle lately?

Even more telling: in high-cost metro areas (New York, L.A., San Francisco, Miami, San Jose, etc.), not even a 0% mortgage rate would make the median-priced home affordable for the median-income household, once you factor in taxes, insurance, maintenance, and other costs.

I personally use 25% when estimating the value but you don’t know for sure until you do the study but I find they are rarely less than 20% and rarely more than 30% on small multi props in the Kansas City metro where land is rarely more than 10% of the value of a property. 

Normandy and Paris both carry so much history and heart; approaching those markets with the purpose of adding value where your family hasn’t yet is a beautiful way to diversify and honor your roots.Keep building at your own pace, with clarity and compassion.

You can quickly find an anchor point to gauge in any metro area: look up the median price.

Probably a dozen metros between the 2 states that are booming, most of which have affordable neighborhoods. 

You can still find solid duplexes and small multis in the $120K–180K range that can hit the 1% rule and cash flow from day one, which is getting harder to find in a lot of metros.

.$300M Huntington Place Renovations & New Detroit Hotel https://www.crainsdetroit.com/real-estate/huntington-place-renovations-new-hotel-deal-reached$200M Chase Investment in Detroithttps://www.axios.com/2023/09/28/detroit-rebound-jp-morgan-investment$44M Investment, 237 New Jobs: Bollinger Motorshttps://michauto.org/bollinger-motors-plans-44m-metro-detroit-investment/$21.5M Investment for Detroit west side Dexter Neighborhoodhttps://www.clickondetroit.com/news/local/2023/11/01/neighborhood-on-detroits-west-side-receives-more-than-215m-in-investments/$20.6M Investment, 186 New Jobs: BorgWarnerhttps://www.crainsdetroit.com/auto-suppliers/borgwarner-invest-206-million-create-186-jobs$11M, 200 New Jobs: Volkswagen Scout Brand Investment in Detroithttps://www.teslarati.com/volkswagen-scout-11-million-detroit-investment/New Detroit Developments to Be Excited Abouthttps://www.metrotimes.com/detroit/15-new-detroit-developments-to-be-excited-about-photos/Slideshow/32734721/327353923 International Companies Choose Detroithttps://www.detroitregionalpartnership.com/international-investment-comes-to-detroit-region/6 New Residential Developments in Detroithttps://detroitisit.com/6-new-residential-developments-in-detroit-to-know-about/Contact us with any questions you have.

✅ Sufficient population: cities with a metro population greater than 1M.