Like I tell everyone who asks me for advice:  know your objectives and know your tolerance for hassles.Best of luck!

If you aren't comfortable with the risk tolerance of the deal, and then having that person never be in your life again because you just lost them $100,000 that took them years to save...well then you need to keep doing research and building your confidence so that when you do see the right deal you can jump on it and know why it's a good deal.After doing a few of these you'll have a track record that will allow you to approach private lenders.

If you drive thru the area and it’s within your tolerance, it might be a good area to start looking. 

So an LLC gives you maximum flexibility, tax-wise.As you can see, this all depends on your personal situation, risk tolerance, income, tax bracket, net worth, and a myriad of other factors.

If you have a large amount of cash reserves with great income and a risk tolerance, then they may be right.

@Matt RayThere are a lot of different factors to consider and what you place emphasis on will largely depend on your RE investing goals, risk tolerance and available cash for property purchase.

Some investors stick to one asset type and others will move to a different asset type at a lower point in the cycle compared to what they have been investing with in the past.Tons of different ways to invest and each person is different for risk and tolerance.  

Then go out and invest like you have no money and see what's possible.You'll get a lot of suggestions, but it boils down to your level of risk tolerance and what your goal(s) are?  

Great question- however, only you can answer that question based on your risk tolerance and future goals.

They have probably identified a certain tolerance, where an offer in that range will be accepted.