But make sure you have clear written expectations in your contract, and just know that you will have to observe and give notice when they don't do it.  

My observation is that organized and persistent people get these loans fairly smoothly and we can close within 2 to 3 months start to finish. 

And observing those properties let me know what Fire Sale prices were, and what condition the property is in.

I tell the propspective clients I counsel in my office--- pay me a couple thousand now, or a couple hundred thousand later.Also remember, that the majority of the states observe the "Statute of Frauds" this means that in order for any agreement surrounding the disposition of real property to be valid and enforceable, it must be in writing and signed by all parties.....Sorry about the lecture... but I see way too many people make big problems by not spending the intial money and time to fully protect themself, their property, their family, and their friendship!!!

I did observe people giving you great advice trying to educate you on the situation, but it seems like you are not receptive to it. 

If the LL knows of this and lets it continue the municipality can confiscate his place.Ha, I was once rehabbing a place across the street from a crack house and gave the cops a key so they could sneak into my place, observe the buys, and then have the druggie arrested once he was out of sight.

But that's neither here nor there, just an observation.

One observation I have made is that there is a need in my area presently and my previous state I lived in for "contractor garages".  

Risk can be observed in past projects based on your variance of returns.

This particular property was an example of a spec build that doesn't seem to be panning out, and for no observable reason.