However, make sure your numbers are making sense and not low balling an offer.

Bonus - tomorrow I am working with a friend of mine Spencer Ball (Attorney and owner of Mountainland Title) to do a Q&A prior to the meeting right around the corner from The Huddle at 5:30 pm. 

If you have the funds and you need a place to live in, you're fine rolling the ball now.

I want to get the ball roiling on this ASAP.

You don’t have a Cristal ball to predict anything.

Using a crystal ball to pick a location that will double in 10 years is gambling.However, if all you want is future money, then that strategy can work.

I'm more versed in California than in other states but, in California, the following would be considered acts of a foreclosure consultant (Number 3 is where all of those "Subject to" gurus get nailed):(a) “Foreclosure consultant” means any person who makes any solicitation, representation, or offer to any owner to perform for compensation or who, for compensation, performs any service which the person in any manner represents will in any manner do any of the following:(1) Stop or postpone the foreclosure sale. (2) Obtain any forbearance from any beneficiary or mortgagee.(3) Assist the owner to exercise the right of reinstatement provided in Section 2924c.(4) Obtain any extension of the period within which the owner may reinstate his or her obligation.(5) Obtain any waiver of an acceleration clause contained in any promissory note or contract secured by a deed of trust or mortgage on a residence in foreclosure or contained that deed of trust or mortgage.(6) Assist the owner to obtain a loan or advance of funds.(7) Avoid or ameliorate the impairment of the owner’s credit resulting from the recording of a notice of default or the conduct of a foreclosure sale.(8) Save the owner’s residence from foreclosure.(9) Assist the owner in obtaining from the beneficiary, mortgagee, trustee under a power of sale, or counsel for the beneficiary, mortgagee, or trustee, the remaining proceeds from the foreclosure sale of the owner’s residence.

I understand it's a different ball game, but want to possibly get some experience under some more experienced investors in that area of expertise before going in with a couple other smaller investors on a deal of our own.

He exercises common sense: he wants assurances of being paid and some recourse if his payments stop coming.What you're offering him is some flimsy LLC that he would have to go after if he is not paid.

You may want to exercise that right in this case, as the property obviously has significant issues going beyond what the seller will be able to fix within a reasonable timeframe.