We still take an application fee and perform regular screening (credit/background/reference/employment checks) but our expectations are most will have little to no credit history.

I'm thinking like this: First the Micro: How are MY target areas performing in terms of economic indicators?

I've been told by some that if you buy something that's already performing at the maximum occupancy, you'll be paying top dollar and the only direction that your property value can really go is down if you mess up and end up losing tenants, since you don't have room to add value by increasing occupancy.

Once you get over that hurdle and get the properties performing better, you can learn the ropes, take over if you want to, and really fix the problem.

If they exercise the option to buy, the option fee goes towards the downpayment as well.Questions:1.

What if the property performs worse than when he owned it??

An amount equal to $___________ of each payment for each month in which rent was paid, will be credited to the Tenant/Buyer and applied to the purchase price of the property in the event that the Tenant/Buyer exercises its option hereunder and legal title transfers.Exclusive occupancy and possession of the property transfer to the Tenant/Buyer on the date under "2" above and remain with the buyer during the term of this agreement and any extensions thereof, unless Tenant/Buyer defaults on any payment required by this contract.

Then the investor expects that investment to perform that way in year 1.

Ethics aside, what difference does it make to a seller whether they receive $0 or $1,000 if the wholesaler is unable to perform?

I agree that its expensive but have not found a better source to do do real life exercises.