I say trust your first impression.

But I also refine my model every time I get new data, and one day I'll find that the 50% rule is actually the 48% rule (or the 45% rule, or whatever) for me, based on my economies of scale, my location, my costs, my network of professionals, etc.My only point is that experienced investors should trust *their own* numbers (including experience and historical data) more than the seller's, the realtor's, or even the 50% rule.I think where we are disagreeing is, if an investor were to come on this board and said, "I have 100 properties with average OE of 44%, and I'm looking for another 100 properties...what OE should I use for my future analysis?"

Hello everyone,I'm wondering if anyone has experience wholesaling REO's using Land Trusts.

Now, that said, the only way that would be the case is if:1) the seller didn't know how to determine the value of his property, and was ripping himself off;2) you had the ability to reduce expenses to a point where very few owners can; or3) the seller is extremely motivated for some reason and is willing to practically give away his property.I'm guessing it's none of these, and that you are actually being too conservative in your pro-forma estimates.

In a lot of ways I believe the article is a slightly veiled attempt at using trust funds to protect assets.

Trust me, there are worse looking properties in the neighborhood. 

I learned from it, and I can tell you it will never happen again, but I am not blaming the other party, just myself for being to inept or trusting to prevent it.In this case, yes the economy would be slammed if they went bad, but just like with Gas Prices, I think it might be good for us.

It's now obvious to me that this arrangement - extremely common here in Australia - is not used extensively in the USA.

I have spoken to other investors and they are telling me it's time to dump her and find someone who is willing to trust me as a professional.

Be extremely careful....These scams are on the rise again due to our weak economy and the desperate souls that are looking for something for nothing.