The other day I lost a deal for a DSCR loan at 6.99%, no pre-payment penalty, and no points. I thought it was hard to believe they were closing on this kind of loan, but it was indeed true! I spoke with the lender and...

Through the process, pre-approvals, agents, searching, etc.. became clear that we'd be taking on additional expenses with a big mortgage to get our dream house (pool, staircase, yada yada...)

I think you may see some additional activity with an initial bump, but not sustained or increase in pricing. 

I'm exploring the idea of consolidating multiple underperforming rental properties into fewer, more stable ones using a 1031 exchange.The concept: Trade 3-5 distressed properties (constant repairs, problem tenants, negative cash flow) for 1-2 stabilized properties in better markets - ideally structured as a cashless swap to preserve the tax benefits without using a DST.

I often tell folks mgmt is like an insurance policy, sometimes you get lucky and we do a ton of work for the small amount you pay us and you get all the benefit, sometimes you don't need alot but we are there ready to help when needed. 

I would focus on investors selling off a portfolio as they will be the most likely to understand and see a benefit from seller financing (the additional money from the interest on the loan will add to their bottom line, and they may be able to spread their cap gains tax hit out depending on how the deal is structured and their tax situation, and they may like the idea of getting that “mailbox money” from the payments without having to continue dealing with tenants and leaky pipes etc.).

I really don't see any benefit working with a direct lender unless you are making a higher margin on the rate.

Other than with the 50 it's easier to make additional payments to principle if want be.

This way, you would take a % of the gain tax-free and defer the additional tax left over in a 1031 exchange if you wanted.

THey get reap all the benefits while if investment doesn't return any value, they would not lose money, but LP is the one that's taking risk.