A quality deal you have control (under contract, seller only wants to work with you, etc.)3.) 

For someone that's not as conservative, or a different view on the cycle, they might have a different opinion than me on all of this.2) Sponsor quality check: (takes about 45 minutes per deal)I believe that a great sponsor can take an average looking deal and make it great, and that in mediocre sponsor can take a fantastic looking deal and make it bad (especially if there is a severe recession).

For reserves, you'll want 3-6 months of potential expenses saved (repairs, vacancies, unexpected costs).

It provides more clarity for me as this is new and uncharted territory - especially how the repairs/draws take place seeing that this was a vacant fixer-upper and the lender in 1st lien has a rehab loan.

I think their general stance is going to be to go with whichever comparable property has the greatest degree of similarity in terms of (probably, in this order): location, age built, quality of construction/current condition, and square footage.

They were offering up to 23% on their notes, and I've heard from a guy named Madoff that it's kinda hard to Pause distributions in the middle of a Ponzi scheme as SEC doesn't approve of irregular theft , sorry, distributions :)Next time you come across a suspect investment or just poor quality or even just one with high fees, please POST to the BP Forum dedicated to this "Syndications and Passive Real Estate Investing

Total cost (purchase + repairs) is 49,000, that is approx 64% of ARV, less than the recommended max of 70%.

Under bidding, poor quality, not following timelines - those will all kill your project.

Of course, many investors bend/break this rule, but that's another risk.2) If your bid wins the foreclosure auction, you then have to deal with getting rid of any occupants - who may steal/damage everything they can in retaliation:(3) You MUST have a great crew on the ground that can minimize surprises - not easy to do on your first deal.Regardless if you buy a foreclosure or other property, read our copy & paste advice below:-----------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

I took on the challenge and repaired them both myself.Many people have told me that real estate isn’t worth the hassle, especially when starting out.