He may also have inside information which allows to take such a large gamble.

It could appreciate but I consider that gambling.

And Land Trusts are only legally recognized in a few states (FL, VA, IL, HI), compared to LLC's which are recognized in all 50.

Corporations are recognizing that they need to come back into the city to continue to recruit young talent, and Chicago is seeing a lot of the influx of these HQ's.  

That's because a home is very likely to be the single most valuable thing a person will ever own - and the states recognize that a fast-talking flim flam artist can convince an uneducated (in real estate) seller that their home is worth a lot less than it is and steal a bunch of the equity that should have gone in the seller's pocket.For evidence, I present my current clients in Plymouth who received an offer that was $100,000 or more below the current market value.If I were to screw a seller the way wholesalers commonly do, I'd get some combination of fines, license suspension or outright revocation. 

If FMV is significantly below what the renewal rate is set at then a sophisticated tenant will recognize this and negotiate to FMV.   

As Christian said, please upload a personal image so we can come to recognize you as you participate on the site.Welcome aboard!

@Shiloh LundahlOnly way you are getting true passive income is from legacy stocks, stuff like Coca-Cola KO, Procter and Gamble PG, and Johnson and Johnson JNJ.

"Investing" for appreciation is not investing - it's speculating (gambling)."

Alternatively, if recognizing the market has a high absorption rate, the agent can increase the price without potentially sacrificing demand for the home.