I thought I'd share my latest short sale fraud observations.

http://www.biggerpockets.com/blogs/1560/blog_posts/16654

If there is financial distress and the original owner ever gets evicted, you the investor will be perceived as taking advantage of the owner.

In my area properties are bought with low caps because rents are perceived as low and the future of rents is thought to increase as they are now.

Sometimes, even a perceived calamity such as losing one's home, can have a positive outcome.

I may not make $240k-$300k/yr, but I'll probably work fewer hrs and will have more perceived security.Yep, Option 1: I would surpass the rehabber's and wholesaler's income in about 7 yrs anyway.

I've often found those making offers always trying to hit home runs, and overpaying as a result. they often do so because they are attempting to mitigate perceived risk. maybe work in areas others aren't or wont (often because they are greedy or scared or both), Maybe concentrate on places with smaller returns, and do more of them.

While all defects in a house should be listed in the disclosure, I don't know the extent of the damage and it could be perceived as 'normal use', if the damage is light.

These factors will help the investor determine their perceived risks regarding if the note will default and if the note defaults, what are the risks of at least being made whole if they foreclose and liquidate the property.

I'm not promoting unscrupulous behavior but sometimes desperate seller do desperate things and if they perceive motivation from  @Javier Osuna would they attempt to get creative?

With that being said, i've witnessed what i perceive to be some people making pretty good returns with low income properties in my small hometown, so i’ve decided to take a much closer look.