Pay $2 to $4 per item.5.  

Focus on the big-ticket items and estimate costs.Financing: Whether it's private money, hard money loans, or a traditional lender, make sure your financing is lined up.

His goal is to diversity his money as he's been very successful in another business.

Would like to understand from you the investors standpoint what part of the due diligence that failed.Another item of discussion has everyone gotten over the concept of Passive investing? 

Diversity is great, but the fundamentals for real property are too strong in my opinion. 

This way I get paid upfront for my work 1-2k plus I know I have another payday at some point in the future if the deal closes.The costs to fully develop a property and sell for near retail usually involves the costs below and takes 2-6 months or more in some cases, but the profits can be huge if you're working in markets where land costs are high:Title 200-400Legal 500-2000 depending on zoning issuesIf wetlands are present AND its a buffer zone project: 2000-5000Perc & septic design if needed 1500-3000Treescaping & cleanup for retail sale 500-1500Selling costs of 6%I tend to stay clear of properties that need more than the above expense items.  

If, however, there are any gaps at all in any of the above items, even a gap so small a mouse can squeeze through, that tenant will exploit it and your life just became a 7th Level of Dante's Inferno.....:)

The loan does need to be secured by the property being improved if we are talking about a personal residence and personal itemized deductions on Schedule A.

Most syndicators are not very motivated to put together profitable deals because they make money by putting together the syndication itself.As I've mentioned, not all of my passive investments have done great, but in aggregate they have done better than average because none of them have any of the items mentioned above. 

I have one I have drafted up but would love to compare against others.What are some items you always included in your MTR rental agreements?