If you screen your tenants effectively and set expectations before signing the lease you will minimize many of the problems you mentioned not wanting to deal with.When they do arise you can either refer back to lease/expectations or evict.

Plus, you'd be surprised how often opportunities arise to represent someone and make some quick cash;- You'll get access to the forms you need;- You'll get access the MLS and some potential deal flow;- You'll have the ability to list short sales (if that's your cup of tea);- You'll be able to network with lots of others in the industry;- You'll learn all the basics of real estate that you're currently confused about.

The gentlemen buys a home owners insurance and has the tenant pay for any minor problems that may arise via the deductible, then tells the tenant that if there is a major issue then he will take care of it.

Though the stock market allows margins RE has no margin calls so the two are hard to compare.A bigger issues arises that gets more to the heart of the matter.People are generally specialists when it comes to how they make money.

That would mean two closings so make sure it's worth doing, otherwise just sell the option and take your assignment fee.Options are specifically addressed in the SAFE Act, better check with your state, as anyone who has been doing them for 50 years may still not be compliant, nor really know what issues arise, or care if they are selling a book.:) Good luck...

Reduced Probate:Through a land trust, you can arrange for real estate holdings to be distributed as requested to your heirs, avoiding the time consuming and costly complications that can arise from a probate proceeding.

The use of the due on sale clause arises out the interest rate risk for the lender.

Seems to be working correctly for now.Let me know if any other problems arise.

I have a 10 year trading background in financial derivatives, mostly options arbitrage and structured commodity deals.As a trader it is clear that it is much better to buy a stock (real estate) in a rising market than in a falling market.

If not, without any cash reserves, how would you handle any issues that arise with either of your projects?