A 30-35% ROI over 4 months sounds appealing, but it's important to make sure it's realistic and sustainable based on the rental’s performance.

It sounds like you had a property under contract to buy and that your realtor (team lead) has told you that has been terminated. 1.

sounds like theft is a big issue for you guys.. that sucks..

@Stuart Udis you sound like one of the good guys :)  This line is GOLD, "90% of people who post on BP about entity formation or transferring properties from their personal name to an LLC cannot articulate the risk they believe they are protecting against"Its a game of risk/reward.

Quote from @Robert Bell: As a private lender, we use reserve funds as a way to gage whether or not someone is financially ready to take on a real estate investment. 

. - That sounds like assuming the loan.

But maybe that's just me...In your case, it sounds like they have buyer's remorse and are ashamed to tell you after signing, but also don't be surprised if they show up on the 31st. 

The concern arises when you're acting as an agent for others—there, the law is stricter.Since you plan to use the agreement for future properties too, it might be worth getting legal guidance upfront, even though the $1000 fee sounds steep.

Sounds like a good place to start (for both of us).  

The potential issue is that he may have gotten his interest rate when rates were lower and you may get the deal at a higher interest rate which can potentially have the deal at break even or at a loss.The quality of the deal will depend on what your net income is and what you are putting into the deal.If in the above example and you have the same net income, the deal sounds amazing if you are putting in $200,000 because you have a 10%+ rate of return.But if you are putting in $2,000,000 the deal is horrible because you are making 1%