And, of course, they want full indemnification for basically all but burning the place down themselves.I don't know if I want to start the relationship off with what I perceive to be an attempt to rip me off, even if I can negotiate it back down to reality.But before I do anything, am I wrong that this is outrageous?  

There are business reasons to have an entity and they are necessary for prudent business relationships. 

After we get the repairs I'm almost positive the value will go up (new transit line close by, super hot market) but feel it would have been much wiser to buy into a newer building and get out before it starts needing repairs. 

We're doing a lease audit, etc soon to verify accuracy.The lender is local and wants a relationship with the seller as they are successful so that is how we worked that out but we've talked to other lenders we've used in the past and they seemed to think it'd be no problem.aaaaaand I don't know how to link names quite yet soooo.. forgive me. 

From the get go it was a rocky relationship.

I have pretty extensive relationships with the brokerage community there and they push me about 5 to 10 properties per day to look at. 

Network, social clubs, chamber of commerce, newspaper advertising , craiglist, car signs, Youtube, investor clubs, school board meetings, church groups, Personal lawyer, mailings, foreclosure lists, neighborhood door knocking, drive bys, grocery store bulletin boards, Trulia, Zillow, realtors, expired listings, RealtorTrac, FSBO, Garage sales, Open houses, Family reunions, Fire truck chaser, Funeral chaser, Floods, Classified ads, Apartment rental listings in newspaper, Current Tenants, Hud home auctions and listings, REO's, Real Estate auctions, Auctioneers, Appraisers, Relationships with Building code inspectors and others in office, Propertry Tax sales, Sheriff auction sales, Soliciting mailings to Probate lawyers, Real Estate seller lead providers, GURUS that have lead programs, Start an RE investment club locally, Hold seminars local on how to buy a home or sell your home. and on and on and on.

They were looking to establish relationships for repeat business.

@Jason Bible:I recently bought homebuyershouston though am just sitting on the URL right now as I've had some success sourcing through relationships/auctions.

But if the bank finds out about your relationship, you'll likely be excluded, too.