If you have mastered RE principles, assessing the value of the collateral is fairly easy. 

Same issue with a Registered Agent.Either method are fairly inexpensive and very easy to do yourself.  

In other words, the cap rate becomes fairly meaningless upon transfer.Your job is to assess whether or not you can make a good profit after buying the asset at whatever the sale price is. 

It does everything, but there are a fair amount of glitches.  

And I generally require a sponsor that has full real estate cycle experience with little to no money lost, low leverage, high skin in the game and reasonable fees and promotes.However, other investors will look at these deals as bad/too boring for them because they are more aggressive and not concerned about the risks of default, refinance, interest rates changing etc.

In my main area, fair priced units usually last under 15 days on the market long.

are you already fairly diversified? 

Get estimates for all repairs that are above fair wear and tear in advance. 

And that's fair since we know not everyone is honest about their listings.

Context matters, and there are steps you can take to protect yourself while still giving applicants a chance to prove their reliability.ALTHOUGH, still stay compliant with all of your states Fair housing laws, Always.