If the carrier includes this language, they are not in a position to use any type of comparison of limit versus the ultimate true RC value.

@Matthew Kreitzer can comment more but ultimately he will tell you the same thing, find a local expert.

If you haven't already, check out the Ultimate Beginner's Guide here on the site.

Now, with that said, I think that creative financing and other means to secure a deal with 5% down are fantastic, but it ultimately boils down to the risk tolerance of the investor.

My fear is that in the event the HML forecloses, they may increase their lien to an amount that squeezes me out of any profits when the property ultimately sells and I won't recoup my principle. 2) How difficult and expensive is it to file a second lien?

In my opinion, which I recommend to my Investor Clients as what I call the ultimate Retirement Plan for Self Employed/ Husband & wife qualify, is the Solo 401K (Roth) Unlike a self directed IRA which requires a third party custodian, you become the custodian.

The real estate portion of the problem is quite often a major hurdle to the ultimate problem getting solved.

Rich - it's looking like at this stage, the action you are looking at may not be of help to our situation as it appears our first port of call in the courts is firmly at the door of GCD/title connection, we will be entering a pleading shortly - may ultimately lead to us knocking on garber's door though!

Unfortunately, it is NOT an easy task to undertake when collecting past due amounts owed.It is especially tough when you are an Out-of-State Owner and your tenant defaults.Hiring a Professional Property Manager is ALWAYS an ideal solution so that you know that your property is managed by a professional real estate agent and that they are LOCAL.Our company for example is able to provide all services from leasing up, to property management; we are able to collect rents and if not, we send the required legal notices and ultimately file an eviction through our attorney with typically minimal cost to the owner.If anyone is interested in our services, please visit us at http://www.axiomresidential.com

But generally speaking, the PR is the one you will ultimately have to deal with.