Once you develop a system, lending is as repeatable and mechanical as it gets.

I also remember different developments were "FHA" approved. 

Did you develop your own NOI or use theirs?

Someone I knew (still know) was a big-time data base designed for a large consulting firm.

Also, you start to develop expertise doing due diligence and deal analysis.  

@Ke Nan Wang - I would love more info on your development!  

On a condo development project, I discovered that the zoning approvals conflicted with the building code due to a design team oversight.

These often include ground-up development, major redevelopments, or distressed assets.Key characteristics:Development or heavy repositioningHigh capital requirementsMarket and execution riskCyclical exposureExamples:Ground-up mixed-use development in an emerging tech corridorDistressed hotel acquisition in a recovering marketOffice or retail conversion into multifamily housingWhy investors use opportunistic:These deals aim for outsized capital appreciation and are typically reserved for a smaller portion of the portfolio due to volatility and complexity.REITs & Private Equity Funds (Liquidity & Diversification)Beyond direct ownership, many investors allocate capital to REITs and private equity real estate funds.REITsPublicly tradedHigh liquidityProfessional managementRegular income distributionsExample:Shares in an industrial-focused public REITPrivate Equity Real Estate FundsPooled capitalOften focused on value-add or opportunistic dealsLonger lock-up periodsHigher return targetsExample:A private equity fund targeting value-add multifamily assetsWhy investors use them:These vehicles provide diversification, passive exposure, and professional management, complementing direct property ownership.Final ThoughtsA well-structured commercial real estate portfolio isn’t about chasing the highest returns—it’s about intentional capital allocation.By combining:Core for stabilityCore-plus for measured growthValue-add for forced appreciationOpportunistic for upsideREITs and funds for liquidity and diversification…investors can build portfolios that perform across market cycles while aligning with long-term goals.The most successful investors don’t avoid risk—they manage it strategically.

I as an investor may decide that based on my risk appetite and risk tolerance, I want to pursue higher IRR riskier development deals that use high leverage.

We're looking to develop our a portfolio of rental properties in college town(s).