Have to buy fat deals to account for inefficiency in the business.

This is where you make your money, buy low , fix and then sell or cashflow.I would say about 20% of the foreclosures that I assess for banks are properties that investors purchased and went belly up on.For instance , a duplex just came up as a REO in my small town, I had worked with the former owner a bit and knew the property quite well.

From a financing perspective you won't be able to get bank debt unless you or a partner has to net worth to secure one - you will be going the hard money route (aka expensive) but even then we would look at the experience quite seriously and you will need a fat deal.I think people underestimate the permitting process, time, fees, and qualified team you need to actually build a brand new house - and that is just from a permit perspective.

We have had some pretty fat wholesales and a good buyer won't care as long as you are leaving lots of meat on the bone for them as well.

A lawyer who sees that set up would only take the case with a big ole fat retainer. 

Several friends who bought units as investments went belly up (these were successful accountants, etc.).

If that is the case, you may want to get a fat, not 1 or 2 but multi-mil, umbrella policy to save you some money instead of upgrading each of your properties' liability coverage.FYI, a while ago, numerous Bay Area restaurants were hit by lawsuit from a lawyer, https://www.cbsnews.com/sanfra... 

You don’t ask Brad Pitt what it’s like to be ugly, you don’t ask the fat guy for weight loss advice, you don’t ask someone living pay check to pay check for financial advice and you don’t ask someone who’s lunch money is dependent on commissioning your wallet what you should invest in.

@Omar Khan  And they stole our vodka right out of our freezer.Those were the teeth of fate that tore into me, those were the lips of fortune that smacked over me, that was the gullet of horror through which I descended into the heaving acid of the belly of life that made me the real estate investor I am today, flaked and formed, reconstituted and transformed.McRib is more than a program, more than a lifestyle.

Also I do believe there was a verbal contract in this case but it may be a toss up if lawyers were to get involved and it doesn’t seem that they want this to happen.If the Sibling did not report the money the sister was paying on the mortgage but was taking all of the tax breaks for owning the property I believe the IRS would be sending her a big fat bill and possible more.