Everyone comes here with perceptions of dealing in real estate as if it were a train load of shoes.

A large number of foreclosures hurt your resale value as it hinders perception and may affect appraisal value.  

You are now in business with someone who may not be as friendly or sophisticated. 

Maybe I have not reached that level of sophistication in my life where I find questions that people ask to tacky or offensive.

One investor, an engineering manager who considered himself relatively sophisticated about real estate but had never invested in a colleague’s startup, says he found Khafagi convincing.

When you are young, you have not had time to create perceptions of what cannot be done.

It gives a very sophisticated appearance.

@Ben Leybovich @Sam Grooms You mentioned the seller was not very sophisticated.

@Raymond Mackay I'm by no means a sophisticated investor yet.

From a business plan/strategy a fund makes a lot of sense for a sponsor when raising capital.From the perspective of an LP it really depends on their sophistication, their desired level of passivity, deal flow, and their goals.