It's not the assignment so much as the conduct in connection with contracting, what you might say, the undisclosed intentions, the deceptive practice of "omitting facts" (another aspect of bank fraud) applicable to a transaction.While in the past, these issues with those in FC were pretty much ignored, not now, probably due to the rise of the scams and false contracts that harmed the borrower and other related parties, especially lenders.

You only need insurance when something occurs...

But if something occurs, then the location being near a major hardware store is key.

By the time you factor in all the income losses and the real expenses that are occurring, the cashflow does not look the same.I like C properties in A or B locations.

I believe good records and the numbers will tell a story of where the most investment transactions occur and this will help me decide where to do concentrated marketing for motivated sellers. 

What happens when a major event occurs, factory shuts down, migration, local laws change, and so on.  

Also, one parcel can consists of 4 played lots....read the legal description.I see 4 types of "auctions" run by auction.com1 REO's where the bank has already foreclosed2 Expected REO's where they're in foreclosure, but the foreclosure auction hasn't even occurred yet3 Short sales, where being the high bidder simply puts you in contract/negotiations on the short sale4 Trustee foreclosure auctions.

Also,we are not obliged to pay costs, legal fees or expenses for these matters.3.1 General risks which are excluded.Risks which:(a) cause you no loss or damage;(b) you create, allow, assume or agree to at any time;(c) arise because you did not pay full value for the Land;(d) are known to you, but not to us;(e) occur, come into existence or appear in Public Records after the Policy Date, other than those risks insured underClause 2.2;(f) arise out of or relate to any business activity. 2.2 Risks occurring after the Policy DateWe insure you against the following Covered Risks only if the circumstances creating or giving rise to these risks occurafter the Policy Date.Forgery, fraud and mistake(a) an instrument is registered or otherwise recorded by which someone else claims to have an interest in or anencumbrance, charge or lien on the Title to your Land because of;(i) an act of forgery, fraud or misrepresentation; or(ii) a mistake by a title registry or a governmental or local authority.Encroachments(b)someone else builds a structure, other than boundary walls or fences, which encroaches onto your Land.

And frankly, you probably don't want to consider litigation over this matter unless the financial harm exceeds $30K, or unless it falls under the small claims limit so that you could resolve it quickly. 

Call it what you will, reserves or an emergency fund or money saved from cash flow, in any case the wise investor should have a solid plan in place for unexpected expenses that might occur in the first month or in the tenth year.