Some lenders that require a Phase I and if any minor issues, an "operating and maintenance" plan be drafted and "put into place".

Hi Andrew:Your best bet is to have the title company run a preliminary title report to determine who the property owner is and how title is held.

One time I bought a note in a state I don't normally operate in and then realized my servicer didn't cover that state.

@Russell Brazil Hey correct me if I'm wrong but the listing agreement language isn't even relevant here.The relevant contract for payment of commissions is the employment or IC agreement between the broker and agent... and I'd be willing to bet anything that contract says you get paid only if the broker gets paid.

It could be a point or so different.Some A go between 4-5% some B is 5-6%But I bet that in LA  or SF done A could be in the 3%!!

(You could put this provision into the deed of trust (where I operate, it would be a deed of trust).I know that's alot of trouble, but . . . 

And it should depend in what kind of equity and experience they bring to the deal and how the operating agreements are written up as to what to pay out to them.

I am more interested to know the operational and legal ramifications of this set up though if this model is successful to improve the cash-flow and the value of the building in min 5-year time frame.  

If you find a property and the owner shows you an operating statement of $100k, it is safe to assume that the property is worth ~$1.43M (NOI/CAP = Value). 

You might want to check those numbers to make sure that's what you're looking forJust a back of the napkin calc shows that your month net operating income might be almost zero  Asking price $135000 Monthly payment  ~$1600 Monthly income  $1800 Water  $80 Repairs  $100   Total expenses  $1780 Total monthly NOI  $20   Keep in mind that $100 for repairs a month is probably a low estimate and the monthly payment of $1600 includes taxes, insurance, principal and interest.