Or NOI could be understated due to capital expenditures being reported as operating expenses.

All of this is negotiated and spelled out in your operating agreement your attorney sets up.Expectations have to be clearly defined and agreed to UPFRONT as equitable for all involved.

Pre-foreclosure is the niche I want to learn and operate in but it appears that I still have much to learn.

Next, I can tell you that other RE professionals, closing agents, attorneys, appraisers or any other who operates under any license to work in RE will have similar views.

What I wanted to know is when you see these large skyscrapers and large buildings being built around your city/town, is this what usually happens, a couple groups of organizations get together and buy a large piece of property.

Real estate Operators need management and maintenance people.

.) - 75 Expenses $820 (I did not include utilities because normally tenants pay for that, but find out what is common in your area.Net Operating Income NOI (Income - Expenses) = $680Cash Flow: $680 - $1134 debt service = -454 You will not cash flow on this property, even if you get $1600 for rent and self manage, so this option is a no go.

Buying discounted notes would get you there and be more sustainable, again, UNLESS you build and operate a hard money lending business (which can be sustainable), but less passive.

The only thing I'm not seeing you account for is Capex - maybe that's because you fixed them up, but you should still budget a minimum 5% of gross income annually for that.You seem well organized.

This is a pretty big, "they don't know what they are talking about" mark in my book and I discount their entire operation to null because of it.