If you’re raising capital for a real estate fund or syndication, you’ve probably heard terms like 3(c)(5), 506(b), or 506(c) thrown around.

Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

Do you think it’s better suited for B-class or C-class neighborhoods?

We've used Reg D 506(b) for our syndications and ONLY communicate with investors that have a prior relationship with us.There are two illegal activities that I see all the time. 

.: Quote from @Sam B.: Quote from @Becca F.: Quote from @Sam B.: Come to Indy. 80% chance you will get scammed but it will be pretty funny. 

You're able to find a reasonably priced rental in a B neighborhood for under $250,000.

And (b) are you gonna go running out and use your weapon to defend liberty?

In my experience A & B neighborhoods with desirable schools get people who are in better shape financially because the prices are higher and that alleviates many of the problems landlords can face.

Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

Here's a timeline of events, per the case they filed:- Owner (let's call him A) died in May 2023- One person, let's call him B, filed no administration necessary as he was the dole heir with court in Georgia in Jan 2024, and was granted the right to sell- The Estate of the deceased sued B in March 2024 in probate court.