They may actually force the local bank to recognize impairment on the asset.

It doesn't make too much sense to sell a portion of the property if you're going to contribute it to an LLC (theoretically taxed as a partnership).Generally no gain or loss is recognized on transfer of assets to a partnership. 

I had recently honed in on Houston, TX and have now been building a contact list of investor-friendly realtors I can interview. 

@Bruce Park - I would recommend going to meet the partner in the market of focus to interview them and verify their knowledge of the area. 

If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up.5.

A bad agent who is only looking to sell likely won't catch it or say anything about it if they do.I would approach the whole thing as an interview, you're the CEO of a company looking to hire a specific professional.

Below are some points I talk through with my investors and clients and have recently been interviewed on some podcasts about this: Clear expectations-what will you need to do due diligence/criteria?

It’s about recognizing the general areas and property types where this can be achieved, waiting for the right opportunity, and knowing not only how to recognize the opportunity but acting on it.

I went and "interviewed" several commercial lenders, found the few I liked and seemed eager to work with me.

The more you know, the faster you can recognize opportunity.