Hey @Sam Tomar,All of these replies have been great, one thing I have been considering and made sure not to overlook is having the following included when calculating my NOE.Management Cost: In the context of an out of state ownership I would assume between 10-12% (of your yearly gross income) as a fee from a company that would manage the property (Procure tenants, manage any maintenance projects).

In my contract, I provide "30% upon order of the materials, procurement of necessary building/general repair permits, and commencement of the work;" 

The tenant would have to Immediately Procure Business Liability (and ideally renter's) Insurance and add our LLC which owns the property as the additional named insured2.)

If he told you about it first, before you talked to your friend, he can show he was the procurring cause of the purchase and can sue you if you buy it.

(I am no lawyer) Does your lease require that you procure any of those services?

@Bill Gulley What hope do new inexperience people have of acquiring JV’s to procure NPN and NPL where the collateral is real estate?

@Jackie LangeThere is nothing wrong with what the OP or the agent did in the procuring of the property. 

This is called Procuring Cause and that agent is legally entitled to the commission.

Depending on the seasoning of the loan and the continuity of the payments from the borrower (or adversely, how many delinquents they have) you can still procure some higher level bids on the loan.

I try and pay and procure   when possible  all materials and have them bid just the labor.