I understand how short sales work, the issue is that if I negotiated the short sale myself, I'm fairly confident I would have been able to negotiate the range lower than the realtor.My question was really in regard to my options being that another party already negotiated a price, not so much how short sales work.

There is no easy answer to your question but it can be done but it has to be beneficial to both parties.

What happened to a contract properly negotiated between parties, written in plain English, for all to read and sign in good faith?

I've thought about the flipping part. I

When walking around, watch for out of towers or former owners that are standing around with or without realtors, out in front, discussing the property.

If they could consistently make $3,333 an hour WHY ARE THEY STANDING IN FROM OF A ROOM BLABBERING?

Dan,It sounds like your friend approached you and is already willing and able to invest with you, so I am not sure an "initial letter" is needed here.The most important part is your operating agreement if you choose to form an entity in which you both are 50% partners or a well written joint venture agreement if you use your own entities as partnerships.These contracts/documents should stipulate all teh duties of each party, death survival verbiage, insurance, and all details of the deal process.

I understand that a person cannot buy from, or sell to, a prohibited party, such as a parent or child.

Selling a third party investment is a licensed event requiring a Series 7 license under a licensed Broker/Dealer.

I want the owner to let me wrap it with another loan with, let say a 5 years balloon.How much Down should I offer to make it fair for the three parties involved?