The bank has the same recourse, so I don't see why they wouldn't, but no one has ever accused banks of acting reasonably, so YMMV.2) Get the property owned and financed in your name, then rent it to your LLC.

Going around and accusing people when in reality you don't know what is going on because you do not live there.As a landlord we send out letters to everyone when a serious issue arises that is brought to our attention.  

I think 10% is just an illusion of safety for you.But that is just me.If I had a deal, I rather tell the seller I am cancelling the contract than giving in to greedy people (not accusing you).A good deal is a good deal, and there are legit ways to handle risk... basically eliminating it as much as you can.By doing due diligence on the house.All such things like "skin in the game" does is create a false illusion of safety.This because, me ALSO having something to lose is not making the deal any safer.

The people named in the indictments are accused of lying on credit and loan applications to guarantee their clients got the loan.

If you specifically say "safety reasons," it's going to look pretty lame to accuse you when something unsafe happens.If they do it anyway without your knowledge, at least you have something pretty good for court.

As far as being nuts, well I have been accused before, but have somehow managed to avoid electric shock and a lobotomy..,....It's still early though. 

We can document that the mortgagee tried to resolve the issues with mortgagor, then we can't be accused of predatory lending. 

But...If you aren't aware of the long running battle surrounding LL stock, there is a considerable short position including some activist investors and hedge fund managers who have been accused of using their considerable influence to provide misinformation about Lumber Liquidators (LL) and their products in an effort to profit from the drop in stock price. 

I'd say don't be too quick to accuse them of being jerky; if your investing takes off  you may be looking for more advice from those very jerks before you know it ;) I certainly hope that's the case!

I was going to write a follow-up post presenting the discounted CF modeling, but since I'm being accused of "stirring the pot" as is, I may just hold off on that...