I would like to know what disclosure forms you all use with homeowners when pursuing a short sale (example- homeowner 1099 tax implications will arise the following year. what are things a homeowner will need to be aware of and acknowledge in writing, in order to protect myself as well as inform them sufficiently.

It is possible for the national index/etf/itb to be soring and the city/town in which you hold your properties just lost a major employer or vice-versa.For most real estate investors your best hedge is to buy your properties well - when performing diligence model the property with rent set under market, a sufficient allowance for vacancy & bad debt, and realistic to conservative operating expenses.

And I didn't start making a high income until late last year, so have less than a full year's proof of sufficient income.

But,expecting to buy it for $20k--unless he's not been following real estate prices for many decades, that would seem to be unlikely.Use this letter as a jumping off point for a larger letter writing campaign and you might snag a deal through the quantity approach.

I would be wary of using it, especially in large quantities and for real goods.

Gunnar,Thanks for the reply.To make sure I am understanding you right, it sounds like it is a 'standard partnership' using an LLC, that I assume the different members have different quantities of shares depending on their percentage of the investment?

As a newbie, you should educate yourself sufficiently to minimize the possibility of such happening.

This assumes your credit is sufficient to make sure you can utilize conventional financing effectively otherwise FHA for the primary home will allow the most leverage at 96.5% loan however FHA adds 1.75% of your loan that gets financed into your loan and an additional 1.35% annual mortgage insurance.

In most situations, that will be sufficient to protect you.

A 25 year old furnace is sufficient until it quits (usually on christmas eve:))