Why would they take 10-12% on your investment when the perception is that they could make that much doing a hard money loan and have more control of the investment? 

So, yes on what Russell said with regards to the reality, and the more perception on the realtor side that this actually happens, hopefully the less of this behavior actually happens. 

However,  I think the perception is that a foreclosure on the credit report looks worse than a short sale.  

That perception holds its own to engineering or any other major offered at an undergraduate level.

@Jennifer Lee  your perception is NOT correct there are no bidders at foreclosure sales that have inside tracks with the companies.. and if they do they are doing something very illegal that the FBI would be interested in. 

This means the family in the $400K house is sending their kids to the same schools as the ones living in the $60K homes.Honestly, there is a 3 street area that if I had unlimited resources I would buy up everything I could, kick out the riff raff, make the homes super nice and rent to commuters for $900 to $1,000 a month.I'm very interested in this area and would be far more active in it if I had a local team in place.Again, this is just my perceptions and experience but I can honestly say to do a ton of due diligence on Greenville and see if it works for you!

Do you know what the rule of law is there or are you just jumping in based on perception and assumptions?.

I think that helped with perception but it accomplished nothing because no partner would do it as well as I would, right?  

Of course, my perception of available deals in the Bay are based solely on my affordability and tolerance for risk. 

Facebook has also been a big part of growing my business social media allowed me to create the perception that I was busy and in demand before I had a lot of clientele.