Yes, basically they're: subject to inspection and if the buyer can procure funding.3.

The past two weeks have only strengthened my resolve to end all investments in mutual funds and stocks to invest in solely real estate.

Start a hedge fund & manage it yourself!

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.