@Chris Hougland you got it right those are the numbers and return in buy and hold in hot markets is 6 to 8% if one is using real numbers and being honest with one's self.. when you look at TK companies cost are usually missing or understated.

From taking the time to read through the posts in various forums there is an understated TON of information that is to be learned.

This will fall under state banking regulations.All states have banking regulations and while pretty consistant, they do vary, but not as to what constitutes a manking activity.

I guess I was under stating my worth in a deal like this, since in essence I’m doing none of the “hard” work.

I said I'm sorry you said that, you did hear the beeps when we were talking didn't you, you know that means the call is being recorded which I'm allowed under state law, I think I will need to send a copy of it to the state bar because it is clear to me you have over stepped your real estate license and are now practicing law without a license. 

You might consider a note secured with a UCC filing on you and your assets as 5% on a 100K property may not meet the cut-off under state law to be secured by RE, there are minimum lien amounts in many states.

Need a lot more info to give you a proper assessment, but the seller (or broker) is clearly understating expenses.

This legal and binding agreement will be construed under ___________ State Law, will not he recorded and if not understood, parties should seek competent legal advice.TIME IS OF THE ESSENCE IN THIS AGREEMENT.__________________________________ __________________________________ _______________Buyer Buyer Date__________________________________ __________________________________ _______________Seller Seller DateReceipt Of Deposit: [ ] Seller [ ] Agent, by the signature below, acknowledge receipt of $____________ in the form of [ ] Cash [ ] Check, as binder deposit, which is the amount mentioned in paragraph 1A of this Agreement.__________________________________ _______________Signed Date-----------------------------------------------------------And heres Sub2 Addendum----------------------------------------------------------Addendum To Purchase And Sale Agreement “Subject To”This addendum is to the Purchase And Sale Agreement dated the _____ day of _______________, 20_____, by and between _________________________________ as Seller(s), herein referred to as “Seller”, and _________________________________ as Buyer(s), herein referred to as “Buyer”, regarding the property located at ____________________________________________________.The parties hereto do hereby agree as follows:1.

As pointed out, HOAs are non-profits, a non-profit may invest retained funds and likely under state law, usually accounts must be insured.

Once I did get the real docs from the seller (usually on the day before the contract expired) I found that 9 times out of 10 the seller had overstated income or understated expenses and the deal fell through.