There is no shortcutting or understating the importance of due diligence.

You can find us on Meetup under St Louis Real Estate Club.

This is only after I've:Built relationships with numerous sponsorsLearned how to underwrite dealsGotten educated (and experienced) with both models (this is not free, dedicate at least $10k to your education)The value of your network and education in real estate cannot be understated!

There are those on this site pitching this Phili properties as good TK deals but as I say the risks are great I grew up in that area, and much of what you say about that city is, if anything, understated.

As project sponsors, we definitely need to ensure our legal bases are covered.For the purposes of my question, let's assume that prospective investors are accredited and any investment would be a qualifying investment transaction under state and federal mandates.

At closing, the deposit is credited to the buyer and reduces amounts due.You can eliminate the use of cash for an earnest money deposit by providing a note or even agreement to hold a draft (which is done, but is ofetn illegal under state law).

As of this time, you need a mortgage originator, a RMLO and a local attorney to review the note and security agreement as that can be required under state laws.

Sellers are notorious for understating capital expenditures.Not only is there the cost of running the pipe, what about decommission of the septic systems (e.g. pump them, break out the top and bottom + fill with sand type thing)?  

Federal brokerage laws apply depending on the type of loan.The type loan advanced determines what laws apply, residential loans will kick in RESPA and a bucket full of other regulations.Advertising to make loans is also covered under state and federal law, I suggest you not advertise on CL in Mo. or most any state for that matter, there are federal financial advertising laws.

The value of a good mentor is understated as most beginners spin their wheels and never overcome the comfort barriers.