I am a retail lender today, but moving to the broker/correspondent channel in a few weeks.   

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

Like, "After $6k per door in value-adds and the corresponding $150 rent premiums, the building would be a 9 CAP." 

Every tenant has my cell phone number and I think each correspondence is an opportunity to impress your tenants. 

Prices and rents drop correspondingly.   

Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenants: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

I could not really do this in San Diego with cap rates sooooooooooo low and corresponding cash flow extremely low too. 

One property they raised the building value 7% with a corresponding premium increase.  

I agree, almost every file will have an issue that needs to be dealt with between the last link in the chain of title and now. the last mortgage to be paid off would be the most likely defect.The LOI is an example of the underwriters coming up with a mutually protective tool to “kick the can down the road,” as an issue or defect could be pushed on and on to infinity until someone actually made a claim.To answer your question, a number of ways I have seen and identified forged docs was when they didn’t correspond to dates of death, matching signatures from one document established by verifiable source, like atty or title company created and recorded documents , (mtg other deeds, etc…) notaries verifying signatures contrary to verified information.

I like to think that we lenders are great resources especially correspondent/broker lenders who work with a wide array of lenders and lending products to help people navigate different scenarios.