Its much easier to have some real losses if he starts putting money into something he does not THOROUGHLY understand.

He did mention that he was in a credit repair program and that these should be removed soon.

Unfortunately I have invested a lot into some of the guru programs.

Northwestern Illinois has traditionally been a good market for Lonnie Dealers as there are absolutely no street dealers in that part of the state, and smaller communities do not have strong sales programs to control their infill needs.

Maybe the claims were for personal property loss or theft and not for damage to the structure at all.Before you make this a big deal and potentially lose your earnest money deposit, have a conversation with your real estate agent.

If your insurance company knows, they may drop coverage, if there is a loss they pay not pay.

Again it could be a reasonable cost depending on what all they had to do.There are multiple issues here.1.Most of the items mentioned for repair should have shown up on an inspection of the property PRIOR to purchasing.In my mind if you didn't get a inspection from a 3RD party inspector not affiliated with the company selling you the property then these repairs are on you for not doing due diligence.2.The other component is that this property manager has their own crew.I don't like that one but and would never agree to it.Sometimes managers also get referral fees for giving business to skilled trades even if they don't have their own crew.The problem becomes then instead of getting the best rate they have to pad it a little to give back to the property manager for the referral.So either way I am sure the property manager is reaping a benefit monetarily from it.This way they make more than the lousy 50 to 60 bucks a month managing a property.This is why I am not a fan of "one off houses" in an area far away from where I live.This is why I like owning apartment buildings.I can find a full time highly trained manager easily and they use systems and programs to control cost and everything is documented.Since they only focus on management and are not a broker/agent doing transactions and then handling "rentals on the side" my properties get the focus they need to be ran properly.It just sounds like you purchased wrong and then on top of that have a property manager padding fees with the repairs.REO agents used to do this with banks.They wouldn't make much commission on selling the little dumpy houses so would have their company do the trashout,re-key,repairs and charge full market for it.Eventually the banks caught on and choosed their own company to perform tasks and only let the broker list the property for sale.Sometimes that works and other times it doesn't as the broker or manager is now dealing with outside parties they can't control saying work was completed properly and it wasn't.If you haven't had an inspection of the property I would do it now to see what all else might come up in the future so you can expect it and plan for it.

BTW-I’m following the “J Scott” program.

Assuming you decide to keep a property under the option to lease option and hold onto it for whatever reason ( maybe to exercise the option later for a profit on the back end) if the TB doesn't exercise it.If you are lease optioning and assigning, it is a non issue, if you are sandwiching, you disclose that you have clouded the title with the owner, and you want the TBer to exercise, assuming they have been signed up with a credit improvement program, they are eager to cooperate. 2.

I'm just wondering if he had to go through some form of Loss Mitigation , but on a larger scale.