I figure there are three options: (1) get an agreement from him, get it inspected, buy it for cash - that would be ultra-fast and get him out of trouble - only of course I don't have $180K lying around (2) help him get paid up for all his debts in exchange for him selling the house to me, and then I get traditional financing - what are the exact steps here, though?

I've taken the time to learn the laws and I choose to trust them, which means I don't need to worry about putting any earnest money.Of course it would always be good to consult a qualified attorney in your state before making any legal decisions about your business practices.On a technical note, if I were to tell a seller "to make this legal, we have to put down $1 earnest money" I would be lying to them.

There are multiple valid solutions out there and you do not need to lie or otherwise deceive a lender.John Corey

The math does not lie if the deal makes sense.

I know for a fact when i first joined biggerpockets I was like a chicken with it's head cut off and had no direction.

* The investor buyer will not occupy the property.I could lie and state that I intend to occupy the property, but would prefer not to take any chance that my realtor might be putting her neck on the chopping block if this is the case.

I think that virtually every comp is now irrelevant because the mortgage rate environment is so different.Maybe I am chicken little who thinks the sky is falling but if we don't reevaluate the deals we have made offers on already, we may end up with approvals we can't resell.I think prices in general have to adjust down big time in one click just like mortgages adjusted up in one click.Yes, maybe the loss mits will not agree with our new valuations just yet but such is the nature of SS.The great deals always come at the END of a crises.

And yes, I've been lied to by someone who didn't actually own the property.

John, One thing a lifetime in big iron has taught me is that numbers never lie....but they can sure be twisted and baffling, often times subject to perspective, interpretation and even distortion ( try politics ).Here are some more:Actual Foreclosures, or more correctly REO's ( pre-foreclosures not included ) are running at 130,000 a month.

They say McLeod forged signatures, lied on loan applications and altered appraisal reports.Prosecutors said they believe McLeod is the first to be prosecuted for "prohibited activities" by a foreclosure consultant.