And keeps you out of any trouble with debt.

I'll probably get notice of settlement while I'm in court for an eviction on a North Shore property, lol. 

I think he is over leveraged to a 90% debt ratio.

This leaves $2600 after debt service (PITI).

Now he has an eviction on his record and large debt.I know that's long, but I thought some of you might appreciate the absurdity of it all.Anyone ever collect these settlements? 

The process must be understood and applied to team building, investing your and 3rd party capital, and financial deal structure with debt and equity sources. 

I couldn't understand why their credit wasn't better considering their income was what it was and their debts were not unreasonable.

This goes to the title or escrow agent and along with a HUD or settlement statement documenting the fees paid out clearly states and is agreed to by all parties that the EMD funds are loaned and must be repaid at closing from the assignment fee owed to the wholesaler or from the sellers funds. 

Hey Jason - if it's a 1-4 unit, you would need to value it based off the sales comp approach (assuming the buyer is using debt financing).

Quote from @Eamon Conheady: I was purchasing a multi family through an IRA LLC and was utilizing debt to finance it, requiring a non-recourse loan.