Inaccurate, incomplete, fraudulent information.

This is gambling, you're trying to score big, and that always comes with risks.If he was a paying tenant this would be a lot simpler, but not necessarily in your favor.  

Vegas is no longer the world gambling mecca.

This has been a fraudulent strategy that took advantage of the recent real estate bubble.

(There are many other ways to pierce the veil) General partnerships never have protection from liability, in fact if a general partner makes a very bad deal and signs a mortgage for a million dollars then loses it all gambling all the other partners are equally liable for the mortgage even though they never received a penny of the proceeds.

Yes too much fraud out there.Kennedy funding is another group I heard of the closes very few deals to show they do actually close deals but make money off of the loan app.I have about seen every scam.REAL LENDERS understand the fraud that is out there and will won't ask for a bunch of fees like that upfront.If I was the lender I would consider reviewing apps the cost of doing business.The investors are so desperate to get these sweetheart loans that don't exist.Really ask your self if this is just a really good loan program you found or pie in the sky.As I have said before do not let a lender hold any money or their escrow company.Many are fraudulent overseas accounts or shell corps to make it hard to track where the money went.Have your local attorney hold funds and not dispurse until closing and funds from lender have been verified.Usually scammers will not want to jump through those hoops and will just say they can't fund the loan and to seek another lender.

So, if they fraudulently billed you for say, $10k you might be able to seek $30k in compensatory damages.

Hey Jeff - I was interested in why you say 'most of these companies end up going the way of Mason-Hill' which was clearly a fraudulent company not doing any business.

People who bought into a deal where rent is $100 more than their PITI payment are really put into a bind when ANYTHING bad happens.This is no different than gambling.

Just like all the "fraudulent foreclosures" that were being challenged (after the fact), the robo signing, improper notices etc.