You know, part of the "let me use some legal trickery to take something from somebody else" shortcut.Seems like that misconception took off on internet message boards, especially over the last ten years. 

Anthony, the reason I mentioned those good points is because you were pointing out misconceptions about the L/O, more reading on the topic on BP and in regulatory matters will be enlightening.

., but earnest money is not necessary to have a legal binding contract in Texas...that's a common misconception.

Limiting liability is a misconception and there are very few cases where you will have limited liability.

That said, this is a common misconception that folks have.

There are a lot of misconceptions involving Credit.Good Luck Investing, Mike

Twice today I've seen posts that demonstrate a gross misunderstanding of the 50% rule, so I thought it would behoove me to start yet another thread explaining this concept to my fellow knowledge-seekers.The misconception I've seen is encapsulated in a statement similar to:"I'm working on a deal that meets the 50% rule . . ."

I grew up in the suburbs in northern NJ (Montclair, Essex fells area) but I was hesitant to invest in Newark knowing very little about it except for the negative misconceptions it had attached to it.

Do some searches on multiple LLCs here, bad idea and misconceptions, use one entity, you can hold 500+ properties in one LLC.

It is truly a comparison where the "night and day" statement can be applied.Two common misconceptions:1 - Detroit City, and Detroit Suburbs, are the same thing...and exactly alike2 - Michigan, is in Detroit.