Still, being the greedy, risk-taking person that I am, I would be open to throwing $10K or $20K at this area to see what happens, but only after some very thorough reseach.

Again I don't hop on BP to crusade against realtors as greedy pigs who sold houses for more than they knew they were worth to people they knew couldn't afford it just so they could make commissions, those scumbags...

(Sorry I am not greedy).  

In regards to your concerns, you should put together an MOU regarding the terms of your agreement with performance clauses protecting both parties, and eventually lead to a JV agreement.There are several other methods to protect yourself as well as the owner/seller, however, too lengthy to write about.Don't be too greedy, otherwise it will limit your relationships and longevity. 

In a large city, people are cut throat and motivated, by greed. I

In a large city, people are cut throat and motivated, by greed. I

It reminds me of the oft quoted line from Warren Buffet, "Be Fearful When Others Are Greedy and Greedy When Others Are Fearful."

Look out for those greedy lawyers.    

Sure, there are unsophisticated investors who will bite at such comp structures, but I can do deals all day long w/o those fees, and have seen a direct correlation between lead greediness and their difficulty in fully subscribing their private placements.

So I was not too greedy and left equity and cash-flow for a cash investor.