Perhaps as problematic is the contractor that will prematurely suck the funds out of a project and then not want to complete the work.

Chris thanks for the info, chris i also found out that my thoughts were correct.there is no set value, the value of the property is based on what makes sense for you to achieve your investment goals (that's it).some will say to not rely on the cap rate for your purchase decision (which i agree), but to use it to compare to other similar properties that have sold in the area, which is actually not reliable because 1. there will be less comparables, 2. how properties were purchased vary from deal to deal, 3. the inner workings of most transactions are confidential.so the best way to analyze a deal (while using cap rates) is to add your financing terms into the picture (principal + interest and etc) and calculate what the deal is really worth to you.see the normal NOI/Asking price = cap rate is based on if someone were to pay all cash, this is the return they could expect first year, but paying all cash for a property doesn't happen all that often (bank funding will be use for a large portion of that cost).so i found the best way to use this formula and analyze my deals is by look at all factors but also including my financing terms with my desired return objectives into the picture to get a proper view and value to me.

I wanted to know what kind of lenders (hard money or otherwise) would fund this kind of investment?

If I had instant access to funds every time I spotted some thing that I wanted most likely I would run out of MLS properties and have to start networking too.

I have heard a lot about seeking out hedge funds for project funding.

We represent investment banks, hedge funds, REITS, and private equity firms in acquiring property.

We have a couple of generations of people alive now who've become accustomed to their house doubling in value every 10 years or less, and effectively funding their retirement with appreciation of their family home.

. $5,000 per home in cash for a reserve account (invest it in a liquid & guaranteed interest vehicle).With the balance of the funds, you could buy 2 homes in the Vegas area.

I'm willing to do all the work, and remove some risk with appropiate insurance, and an equity investor to put up funds for 1/2 the ownership.

You get permission to market the property, but you act as a principal in the transaction, you lease option, then you assign the deal.You are upfront with the seller, very transparent about your profit.You add your assignment fee to the exercise price.Once you assign & get the fee, you are out of it.All the risk is on the Seller.Challenge here: Getting Tenant Buyers Fee: Cash plus 12 month note most of the time.Positives: No guaranteeing anything, e.g. minor maintenance paid, rents paid.Negatives: No back end when TBer gets funded.