You can't even sue him for Failure To Perform because your contract stipulates that he has 3 more years to prove that he can perform.After you wait 5 years and lose all your hair you finally get to pay an attorney $50,000 to sue the syndicator, but the project is an LLC corporation and you can sue only that corporation.

In some areas bonds are the norm too, if so require that as well. 3) Contract that stipulates timeframe and costs clearly and references an attached bid.

Basically, I'm envisioning putting up the money for a stipulated monthly return.

Ceasar, You certainly can rent a FHA property, the only stipulation is that you must live in the property for 12 months prior to renting it out.Check out this website that will answer the question for you in greater depth. http://homeguides.sfgate.com/can-rent-fha-loan-3231.html

Does your agreement with PM stipulate you meed to review lwase first (doubtful).

The bank has agreed to our last counteroffer on the purchase price but now they want me to sign a form stipulating that we have to agree to forfeit our 10K in earnest money if we walk away at any point after I sign off on the inspection (i.e. like if we can't come up with the cash for some strange reason).The bank informs us that this is there way to feel more secure--given my 45 day waiting period---that I'll pay for the property by the specified closing date.

Other ideas...You can get a private loan for just the down payment especially if you buy a 4 plex, if you buy right it can give you more income to pay off everything....If you have enough equity in your current place refinance it now to get your down payment out...Try to sell your current place with the stipulation that you will rent it back for 2 months while you finalize in the other...Sell your place and rent....You can always sell your place and crash at a relatives.

Also, there were tennants renting one floor who are not on a lease but tennants at will - one of the stipulations also was that these tennants could stay at the rent they are paying (at will) otherwise if we wanted it vacant - they would need to be given a months notice and hence deal would not close by end of Feb.Well we went to see the house and really liked it - we figured that tennants could stay as is until deal closed and then we could revisit the issue.Asking price - 399KWe were told sellers bank had agreed to a 380K short sale - nothing less.We found out that the home had been under contract twice before but fell through - the realtor said it was due to financing issues.We crunched the no's and figured 380K was fair - not a sweet deal but fair and from comps it looked like FMV in this market was approx 380K.We put the offer in subject to inspection & financing.Offer was accepted.We had the inspection and all was pretty much as we expected.We had already been pre-qualified for a loan so we felt confident all would move quickly.Anyway we received the signed purchase offer but it wasn't in the name of the actual owner it was in the name of an investor.And from what we could gather, this investor had taken it off the hands of the distressed home owner and had worked out a short sale with the bank.We had our attorney take a look at the draft of the P&S the seller's attorney sent over and we realize this investor has just recently acquired this house from the homeowner who was obviously in distress and apparently our bank doesn't approve such transactions ie. a seller who has not held title for minimum 60 - 90 days unless we put a substantial amount of money down.My feeling is the seller's agent should have been more clear about this - that it wasn't a typical transaction and since financing had fell through before, i feel they should have asked us who were using and probably gave us an idea whether such a lender would approve it.We can try now to look for a lender who can push a deal like this through and close by end of February.I also feel this investor who has worked out the short sale has worked it out much less than 380K and is basically making a few $$ himself, why else would he be involved.

Make sure the sales contract definitively stipulates that.stephen----------- Originally posted by @Stacey Manley:BP Family,I'm getting closer to closing on my first investment property!

In the University area I plan to work in this is common, and there are rules and stipulations in the contracts about getting someone to sub-let.It is really on them to figure it out.