I spoke to an investor today and was told that bird dogging is illegal in Michigan and that you have to be licensed to be involved in real estate investing.

Should I immediate deny this applicant without running any further reference check?

Chris: Thanks so much for your words.My cousin and his lawyer (swindler) are just stonewalling me and everyone else involved.

Anyway, I am mainly inquiring with you guys because I've never been involved with an REO, so I don't know if it is worth trying to negotiate over these things.

Almost every aspect of real estate involves some form of commissioned sales.

Well I could have gotten my own policy but then there is double the money and debt service involved which reduces margins.I was added as an additional insured because the insurance company employee said it would not cause any issues and then the insurance owner 4 weeks after closing gets all up in arms.The existing policy is much cheaper than the rates I found.The building is 30 years old and once it hits 30 other carriers told me unless it has new electrical,plumbing,roof,etc. they can't insurance it for the best rate anymore.Her in place policy was originally written 10 years ago when the building was only 20 years old.Kind of like an existing lender will do much more for you than a new lender where it has to meet their parameters.I asked about getting a policy for myself and adding her but the underlying mortgage would want her as primary so that wouldn't do anything.I am thinking I can make her part of the corp I have set up for that property with a non-controlling interest.The underlying lender could be told it was for estate planning and asset protection if any questions arose.The insurance company guy says that mortgage companies sometimes do periodic checks on title transfers to check for wrap deals but I think that is being a little paranoid.

I also have cash in an SDIRA, but thought the transaction would become too complicated this way, with the all the restrictions involved.

Buy what meets your needs and budget.Keep in mind, too, that a lease option does typically involve some down payment.I don't see where anyone would be interested in a partnership where you're living in the house.

I'll disagree with Scott but tend to be closer to Mike.LTV means little to me as I don't have an exit strategy that involves selling.To me, it's all about my DTI ratio on the investments.

However, I'd like to better understand how to work within the legal requirements and the various roles involved.