(article excerpt provided by the Commercial Executive Magazine)

Being able to execute is just as important as finding a deal, and mentorship really helps there.  

You each take title to x% of the real estate and then execute a master operating agreement.  

The risk then shifts very heavily to getting all local municipal entitlements and then being able to execute the project within budget.From a lender's perspective we are going to look for experience in the developer to get the project done on time and within budget as well as any firm commitments to lease the property.

Ask yourself 2 things you could have done better in the last call and execute in the next call.

That is what you'll execute to be "under contract".

Your contract should require the seller to give buyer a copy of the lease(s) w/in a stipulated time (like 5 days following execution), and allow you a specified period of time to review them...during which you may terminate.You may also want to look into getting the tenant to sign an affidavit which says that the lease (attached) is accurate and complete....that no other credits are due...confirms security and advance payments...etc.

But really, even though it's a tempting option, I would suggest you figure how you want to run your business first, and then just pick the appropriate entity to execute your plan.  

Rather than trying to short cut things, I'd advise taking the time to learn the fundamentals of personal finance so that you can save some money to invest, and learn the fundamentals of real estate investing so that you will know how to analyze and execute investments properly.

You stand to have a $90k upside if you execute well and probably $1k a month in cashflow.