On the other hand, lots of the sellers are institutional investors or local RE professionals, which inevitably shifts even more risks to newbie buyers.This is a 1-star review for newbie buyers; 3-star review for seasoned buyers who know what to watch out for when evaluating deals; 5-star review for sellers, especially those who want to evade scrutinization from shrewd local brokers and failure-to-disclose-property-defects lawsuits.Well, since I rate Roofstock 5 stars for sellers, why don’t I just list it for sale on Roofstock?

After listening to lots of BP podcasts I am determined to scrutinize my REI deals even further to do all I can to cover myself

Until the HUD1 is signed by both buyer and seller, it's not "official" IMO.Sounds like you might have to closely scrutinize if when it does come.

If they don't agree, then we've probably just let a rather weak and unqualified buyer off the hook.My question really all comes down to this: as a seller finance contract, are we entitled to scrutinize and investigate a buyer the same way the banks can?

I'm in the same boat as @Derrick E. but like he, I too buy lower priced properties and leverage should be scrutinized differently for the lower priced structures.Opinions will always differ on the subject as the decision is a matter of personal preference.

@Matthew Olszak I understand it would be scrutinized and I’d have to have a solid appraisal...but otherwise, which part of this is illegal?

Banks are scrutinizing loans, they have all but eliminated construction loans, some smaller investors are getting hurt on rent collection cans can’t evict.Larger investors with a diverse portfolio are somewhat protected, at least around here.

The moves suggest at best a pause and at worst an end to six-plus years of a bull run in credit, where financial firms have been eager to lend and underwriting standards for credit cards, auto loans and personal loans have been relatively loose.Lenders are scrutinizing applications for credit cards and personal loans in particular because consumers often turn to them when they are in a bind.