It's good you'll have a third party appraisal, that's always a good insight.

If he is purely a lender, he will be paid via interest income and his tax breaks will come from his lending business, not the performance of the property.

This greatly reduces risk on the principal invested because, at worst, the lender owns the property and will look to maximize value by selling the property or selling the non-performing loan.

Do note investors want to buy notes like these or just non performing notes at a discount?

Third, how did you come up with your value?

(third sort here, these are the folks you want to know).LMGTFY on the license requirements, etc. 

A third of that maybe. 

Third, I would let the guy know that stealing utilities is a crime (everywhere I know of in the US) and any further attempt at doing so you will simply contact the utility company, who can get a citation or arrest issued to the guy. 

Hello All,I want to get my first deal and Assigning a Lease option is hopefully going to be my fastest way to get it, as thus far wholesaling has proven to be such an elusive creature.I would like to perform this in the state of IL, I have done a ton of research and think I have a solid plan but would appreciate it if anyone can find any flaws in my plan or tell me where I am leaving myself open to risk.

Hi my mame is Jaroslav and i am first time loan buyer.I have purchased a non performing loan  for $2500 with UPB $60000 and house value $79000 in Ilinois Chicago and my Ofer  been accepted.Whats my biggest concern is the area where the house is.