But if there are any preferred equity shareholder, it's pretty clearly stated as such.Also, anytime a deal has pref equity, I always do a much closer examination.

I am posting on here not knowing if I even picked the right category, but I just passed my Real Estate exam in Michigan and have no clue what to do now.

Again, others might feel differently here.3) property level due diligence: (takes seconds to weeks per deal): here is where I drill in with the low-level details.a) pro forma popping: I examine all the assumptions, and see if they are overoptimistic or not.

If an owner owns a property free and clear, they have no debt service and they have no replacement reserve unless they decide to voluntarily set aside money each month into a separate account.But let's examine one step further. 

Again, others might feel differently here.3) property level due diligence: (takes seconds to weeks per deal): here is where I drill in with the low-level details.a) pro forma popping: I examine all the assumptions, and see if they are overoptimistic or not.

Evaluate the areas very well, and examine your rehab costs.

Even that small extra payment made a difference I could se, so I examined my spending and found additional cash I could pay as principal only.

However, statistically, the odds of there being a title claim for any one transaction is very low, in part because of the work done by the title searcher and examiner doing a good job of identifying title defects in advance of the closing so they can be cured before the buyer takes title. 

 "I've had paid a home inspector examine the premises.

Being over leveraged is a real risk that should be carefully examined.... that said if you can find a situation where an investment is distressed (bad renters, no money for rehab, owner died and family doesn't want, etc)  and you bring a money partner there is a way for you to get into a property as the operating partner doing the work as your portion and the investor money for the cash.