The definition of value is what a seller sells for and a buyer buys for in an open market in a non arms length transaction.

That will make it even harder to clean the place up and evict the non-payers.Lower C and D class properties will cash flow hand over fist... but you'll need to fight with both hands to manage the properties.IMO, sounds like you're buying yourself a job, at least in the interim.

I have my own properties with non rent paying tenants.

Also as far as the down payment, if they give $5k as a down payment and i give them $200/month credit towards the down payment of the purchase price... i dont understand how this works.. do i get to keep that money since its non refundable?

I had received a $200 non refundable payment from them and I accepted their lease.

John,You do not need all of that.What you need is a good commercial broker with a network of good lenders,title,etc.Each one of those types of assets of triple net you mentioned have their own finance structures.For example a pharmacy you can get in with 5% down and non-recourse with a 25 year term and amort.There are no rent bumps in almost all cases until the option period kicks in and it is minimal.Pharmacies are more like an annuity that you will own free and clear after 25 years throwing off good cash flow when it's paid off but being next to zero cash flow during the term..Until then you get depreciation.The lenders will usually go to DSCR of 1.01.With restaurants most are recourse unless investment grade and the lenders want a DSCR of 1.25 to 1.30.With restaurants you typically achieve rent bumps of 1.5 to 2 percent annually but because of DSCR are putting down 20 to 25% of LTV.How much money do you have today so far??

I don't have much experience in REI, although I used to run a green building non-profit organization.

The IRS will have an imputed interest rate on any note or installment contract for tax purposes, she would have to be a non-profit for the IRS not to place an interest on such a transaction.This just shouts preditory schemes to me, as to how you can end up with a property after the seller dies and stop paying....In all of this time spent trying to answer your questions I'm really disappointed to see that you have not come further than you have indicated, seems many of us have been wasting our time.

I'm making an offer on a small multifamily non performing note and will negotiate with the seller to transfer title in lieu of chasing the deficiency, or worst case just foreclose.

This program is only targeting non govt insured loans in the first place.