Hey Mike, I would love you observations on companies like this one below: https://www.nuviewtrust.com/5-ways-to-start-lending-money-from-a-self-directed-ira/

I also observed what they call a "rubber fernco" in the picture you've provided.

However, this is just a general observation I have had with my properties.  

At the bottom line, I'd be willing to wager that very few of these rules are observed in practice, which makes this a more dangerous (or at least useless) entity for the novice.

Excellent observation!

I was just there as a observer but my friend there was a bidder.

The better way for references to work is for those you know to supply referrals; at least you know the person that made the referral (so less likely to be BS), and so you can go and observe completed work.Just my $0.02 worth ...

I'll share with you my observations of others who have done the same thing as you, so please understand that you need to do your own due diligence, and not take my observations as fact! 

I am not saying judicial sale is bad ...it's very sophisticated way of purchasing properties ...the risk and reward is not there anymore ..prices are high and there is a lot of risk...it is not for everyone especially those who found out about the place from auction.com and want to grow fast.they know what they are doing. anything can happen in life but if there's something questionable on the title search, they back off.actually the best deals come with "something questionable" on the title for that specific reason...folks are scared and back off. unreleased mortgage, city of chicago lis pendens, probate, you name it ...you can deal with all that  stuff but you need to know how and who to hire...I've also noticed most of them won't buy if the owner is still there (I'm assuming it's cuz they can trash the place and/or file BK).my observation, occupancy does not matter for them and homeowner can file for bankruptcy after they left the house. they do trash the place and some of them take it to the extreme... 

I'm not knocking "newbies"....just relaying my 16 years of observation in the investing arena.