I like to call it informing or illuminating the BPO an most investors fail to understand this is part of any negotiations no matter the industry.Take a sports agent who is negotiating a free agent contract for a player in the prime of his/her career.

What kind of weight does this put behind the local building inspectors, and the added red tape that is sure to follow for just about any remodel or rehab permit on these homes.

We have a deal in Georgetown right now that has $100k in red meat in it.

You will begin to see which ones are the serious players and which ones are the "all talk and no walk."

Using an option contract can cause issues with some lenders or servicers, but they are still accepted by most of them.One of the guidelines recently published by Freddie Mac which is used by servicers to evaluate a potential short sale advises the use of option contracts as a red flag becuase it smells real estate investor.I like option contracts myself, but they are not widely accepted by Brokers, REALTORS and MLS associations.

Which brings up anouther risk consideration, dispersion of contingent liabilities, if one tenant has a large fire in one unit, the whole complex could be closed and red tagged, not only might you lose income from one unit, it's possible to lose the income from the entire complex.

What are the most common red flags you run into from motivated sellers?

I downloaded a lot of Jim Rohn's speeches on my mp3 player.

It's from the MI Real Estate Laws and Rules, what we agents in Michigan fondly call our "little red book".

To many an LLC or INC after a business name is a red flag not to do business with that company - just my opinion here!