I know practically nothing about Tax Liens, Lease Options, Short Sales, Hard Money Lending, etc.

Another push on the legal side deals with "predatory lending" that can apply to a borrower or a lender, the party that initiates the seller financing into any deal.To understand seller financing you must understand conventional financing, the key of successful underwriting and originating a seller financed transactions is to lead a borrower into conventional financing so that the seller financed obligation can ultimately be paid off in the future.Otherwise, the seller financing would have to be fully amortized and paid off to the seller over time.To avoid predatory issues, being an "investor" on either side of a transaction, you need to understand conventional lending accepted practices, just because a seller is financing does not give them any right or privilege to do just anything someone can dream up.Before you can understand RE financing, you need to master the principles of real estate, 90% of those spouting off about financing don't even have a command of RE knowledge, much less financing.There are many strategies that can be done legally with seller financing.

He is in Spokane but practices law in both states.

This particular building is practically already demo'd itself.

Is this a common or advisable practice for investors who are buying with cash?

However, legally the PR has the fiduciary duty to settle all claims, secured and unsecured or risk court sanctions or worse from an unpaid creditor or claimant.So, in practice, counsel for the PR should require settlement of creditor claims, particularly those for medical benefits. 

However, I think it comes down to how bad do you want to get in the REI space & what are you willing to do to, in order to make it happen.From a practical standpoint- I'm surprised no one has suggested getting a second job.

But I would like to lend credence to the belief that the government may have unwisely pushed the banking institutions to lend in unsafe practice.

The socialist mayorial administration of NYC can't practically or politically regulate the individuals renting out their apts on airbnb, so they go after the landlords, causing the landlords to perform enforcement for them.  

It doesn't work out all roses like we'd like and in the new world since the great recession, they are addressed as an unlawful practice with triple damage awards possible!