If you are just getting started and have no industry experience, I would definitely suggest partnering up with somebody and using some of your own To inject into the deal to get a return. 

@Shlomo Rozen I've seen this type of "partnership" work, but most often do an ugly meltdown.Nobody wants to spend the time & effort to properly establish a formal partnership, with an LLC, Operating Agreement, etc.So, when negative cashflow requires the partners to inject their own capital - there's finger-pointing and a meltdown.Proceed with MAX caution...

I think @Brian G. and @Jaycee Greene hit it on the head: an event occurring/debt resetting.When the debt forcefully resets on some of these assets, valuations drop if the submarket cap rate has expanded and/or if the operator can not show a good t-3, t-6 etc due to economic vacancy and rising opex (insurance, r&m etc).If the operator can't inject equity to cover the difference, then trouble arises.

If there ever is a decision to be made with a property you can have infighting with capital call injections, placing debt for loan or refi, when to sell, etc.

UC campus injects a lot of money into the area and being the newest UC campus, it is still in more in a growing phase than the long established campuses.good luck About that house as a buy and hold investment--I could have done that, and it would have worked out okay.

Great question—and it’s one that trips up a lot of people in the fix-and-flip space.To clarify: the $40k from your personal HELOC isn’t considered income or an expense on its own—it’s simply an owner contribution (a capital injection), not a business deduction.

Seems they could recharacterize their $2.9M from a loan to a capital injection to meet lender requirements, but instead they are 'asking' (threatening complete loss of your investment) for you to repay them. 

Many more don't Each group has a facebook group that is HEAVILY sculpted, censored and injected with propaganda. 

However, the benefits of this type of transaction can still be safely realized with proper structuring and a good amount of equity injection.  

Further, Neal also announced last night that he is making a limited partner investment (cash injection) into the project, even as he gave away all of his general partner shares to a deserving partner.