Some countries do not have taxes which makes it even more difficult here for commercial lenders to assess the borrower for loan purposes.

Would you give a quick explanation of an REO - is it any property that a bank has had to take back from the borrower because they have defaulted on payments, or only certain types of properties or situations?

It's a crazy world.The most important thing to remember is this: never let favorable borrowing terms turn a bad deal into a good one.

I'm happy to share the lease I use with you if you'd like to look it over and borrow anything that seems helpful.As for clubs, watch for the monthly BiggerPockets Denver meeting.

You do not have authority to pull credit on the borrower.  

Borrowing money is riskier than cash because if it all goes to crap, you still own the bank.

As your lenders what their max credit is to anyone borrower, if your dealing with a smaller community bank they will have a loan limit per borrower..

So, after this the new buyer went to the bank, borrowed 100% of the cost of property he paid, and the prior owner/tenant, is paying more for rent than what the mortgage is on the property.  

Does it become continually easier to borrow money or harder as I take on more loans?  

It could be borrow at 5% to make 10%, higher, lower, etc, etc.Its all about managing your cash flows minimize the downside and maximize the upside.