Too often I see investors enter the market here with a false sense of security because the prices are so low but you can make a few mistakes and get yourself into financial trouble if you dont start off slow and build a good team. 

Got a false start in real estate back in 2008 when I had a great job and had been reading about RE for a while - started shopping around properties with an agent, and was ready to put in the first offer on a flip... then I got laid off, and a few months later my girlfriend lost her job too, so that nixed those plans. 

Also, a sizable number of boomers are selling their McMansions in the suburbs, downsizing to condos, lofts, or renovating the big old mansions. 5 years ago a 6000 sq ft mansion in Indian Village or Boston-Edison was $60-$150K (look at the absurd price now), yes they needed $200-$500K to get it back up to date but people sold their homes to do it with the cash they earned.

They would have had to pay using a debit card with a absurd fee. 

There are various reasons why the renter/buyer agreed to these terms, but suffice to say it's a sound agreement between all parties.The terms:$72k 20 year mortgage @ 6.8%Buyer just made payment 44 out of 240 (3 years 8 months into mortgage)~$64,950 remaining principalNote-holder would sell to me for $58kIn the case of an eviction, the house is currently assessed around $140k and I could either sell it for an absurd profit, or just rent it out again (personally I'd hold and do a normal lease).The kicker: The buyer would like to increase their principal payments from $550 to $825Plugging these numbers into here: https://www.bankrate.com/calcu... and doing some slightly fuzzy math:~$9,895.20 per year for 8.3 years before the mortgage is paid offTotal payments over lifetime of loan: 9895.20 * 8.3 years = $84109.20Monthly profit on interest: ($84109.20 - 58000) / (8.3 years * 12) = $262.13 for 8.3 yearsTotal Monthly income: $84109.20 / (8.3 * 12) = $844.20 for 8.3 yearsSo how the heck do I get to COC from here?

Park owned homes give a false reading on your CAP rate.

@Fabian EsquedaThe actions you describe may be violations of: California Business & Professions Code 10130 (acts requiring a real estate license);California Business & Professions Code Section 10131 (what is a real estate broker);California Business & Professions Code 10139 (false impersonation)I suggest that you read up on what you are allowed and not allowed to do.

I'm not looking to circumvent the rules at all, merely trying to see if wholesaling deals false under commissioned income.

The agent can be giving the sellers false hope to pull a lot more money out of the deal than what can be taken out of it, or the sellers have their eyes out of the range of reality.

Hello,Like most realtors I started in that traditional residential market but with the cool down I changed gears to investor market.I have worked with historic and traditional reo and short sales, being a part of an investment brokerage with a large network of investors approximately 65+ K we have been up to date with market demand.Over the last eight months, Bulk REO's have become in high demand and some of my colleagues and myself switched towards working in that market.The problem that I come across time and time again is misrepresentation, false packages and unfulfilled performance that unfortunately causes loss of clients.Any advice in terms of finding concrete contacts that are close to the sell side and how to disqualify pretenders right off the bat?