If you can get in before a property hits the market, you can often negotiate a great win-win deal for everyone. 

That way whenever you do find a deal you'll already have a list of buyers that are ready to buy and get a deal done. 

In other words, not resold to the government so the bank had more flexibility on the condition.I look at the original commitment letter and it states "xxx amount will be advanced at closing for the purchase of an investment property, and the remaining balance of the loan to be placed into an escrow account to be disbursed as improvements are made".No points, and only one closing, so I don't have to deal with a short term HML that I have to refinance in under a year.Hope that helps!

HOWEVER, I'm not to big on taking a % of each deal after the fact like certain franchise opportunities.   

Looking for 1% deals will be cutting things close. 

What made you interested in investing in this type of deal?

Its hard to find deals unless you are connected, advertise a lot, cold call a lot, knock a lot, and/or work very hard at it. 

I have not invested with them but have known Kevin for years and have seen them work hard on many deals.

I've seen many investors get burned because they failed to understand their hard money loan terms/rates, even if they did acquire what should have been a home run deal. 

To invest out of state successfully, focus on building a strong local team (agent, PM, contractors), automating deal analysis, and using contingencies to protect yourself.