The same thing can be said for a fraudulent transaction… in many cases you cannot define what is fraud in general... but I can tell when I see it...In a subject to (“S2”) transaction the basic premise is that Party A will buy Party B’s property and not payoff the existing mortgage (or deed of trust).

A single member LLC is treated as if it does not exist when taxes are filed.

The build quality can be suspect.In some markets the existing tenants have to be paid cash or offered a deal before you can convert their units.There are many code differences when you want to convert 1 apartment building into multiple units.

A trust is all that exists.

Note I am not saying to go after existing listings.

Regardless of existing lease or not, you certainly should have obtained information on the tenant and all occupants, including background info and any rental agreement, and inspected the interior of the unit.

They feel that pooled investments are really securities and are regulated much more heavily than real estate transactions.Lending nationwide means knowing the rules and regulations in 50 states.

Typically, I give options...depending on what the market is doing, either six or twelve month term for, say, 1000 per month, or they can sign a month-to-month for 1150 per month, or, they can allow the existing agreement to end, and vacate the premises by the last day.

Many possibilities exist and some can be a great way to go.

It would take new law or creative interpretation of existing law to make it illegal (which would call into question all business relationships).