I know the FC process, how lenders react, what owners may do, what the credit issues can be, I have experience in doing FCs and the psychology of the owners and I know compliance as well as the RE side......and if I wouldn't try it, I don't see any prudent person attempting to do so.

I sure hope I'm doing the right thing. lol...maybe this belonged in the "psychology" section....

3) requires psychology of the market to continue in one direction for a win - real estate is not linear, it is cyclical. 4) goes quickly to negative equity and potentially a loan will be called (commercial) or fail to be renewed based on this change in demand. 

Psychological Science actually did a study on this back in 2007.

Real estate is not a complex business...that's why psychology is mentioned so frequently versus technical skills. 

Any psychology book or common sense even will tell you, if you pay for water, gas or electricity, they will abuse the crap out of it.

I think it is psychology better to know you have equity in a property just in case you have a serious emergency e.g. a property needs a new sewer that costs $20,000, or a property has fire.

The point is to assess his psychology and mindset about the deal and his home, what he says is not as important… Then ask him: what is important to him in this deal?

Also psychologically, people can keep things scratch free for the longest time, but once there's one scratch, there'll be more in no time. 

Often, at this point, sellers have made the psychological commitment that they are selling the house to you, so a $5000 concession because of the roof might not be a deal killer.The people who are shooting offers out as soon as they get off the phone are playing the large numbers game.