Here is a link to a recent thread that had a similar discussion:http://www.biggerpockets.com/forums/52/topics/90868-early-termination-situationThe "let them go amicably and find a replacement" approach makes sense for difficult people like this, so the penalty becomes the only point to consider.

Maybe flipping homes is where it's at, but my work schedule may hinder me from performing well in that approach.

Even in a higher tax state at say 4% of value (I think only the no income tax states like NH and Texas approach 6%), she would have had to skip her taxes completely for at least 5 or 6 years to owe that much.

My rule; if you are that forthcoming, you are a terrific risk ... it is the ones that hide the truth that are the problems.If I do meet with a prospect face to face, I pay close attention to how new the automobile is, the jewelry, the toys, i.e. cell phone, and the clothes - are they designer clothes.NOTE: I once read more than 50 percent of people making less than poverty level wages own a smart phone.

Her approach to doing Real Estate deals is the exact way I want to do them, where all parties involved in the deal come out on top.  

His company gives out a wealth of information for investors and I personally really appreciate the open manner that he uses when giving data, info and feedback.As for investing our of state and turnkey, so much of your success will be determined by how you approach your relationship with a provider and your record keeping.

I would approach this by asking the seller what are the best price and terms for a fast close.

There is an investor for just about eery good deal in the greater LA area, so if your approach is wholesale, I would suggest you look at areas that have a higher than typical interest for investors, and where a little hustle on your part can secure a discounted contract with lots of value or your end buyer.

I agree, take the softer hand approach.

It's designed for someone eager to own their own home, but who is ineligible for traditional bank financing.