Absolutely...I need to make sure he is committed beyond a handshake and a verbal approval; otherwise I am going to be in a jam.The other thing I have to figure out is how to do bi-weekly payment via Direct Deposit vs. monthly.

In our area it usually takes a well qualified individual about 45 days to get approved for a mortgage.

If they buy it great, if the don't then you always have an "out" bc the contract you signed for purchase was subject-to your final approval of the condition of the property or your partners.

Be prepared to wait a while for a response too. 2nd what @Wayne Brooks said about the price being approved.

Short sales do often require the property be listed before the lenders will approve the short.

I suggest you see your attorney and get that straightened out.I've been point stuff out here for a few years now and sometimes what comes back from investors is that they had their deal approved or blessed by their attorney, so I'll head that off if that's the case, if some attorney approved that, find another attorney.I'd say you're a creative guy, a real salesman, talented in the art of negotiation perhaps, but you should not be writing notes, it's not the wild west and things surface in time, so be careful out there. :)

In a nutshell, it will be much more difficult to get approved for a loan, and fewer choices.There are countless sources for the details of this reform, and it's rather wide-sweeping, but here's a summary of how it affects mortgages:http://www.quickenloans.com/blog/new-qualified-mortgage-rules-effect

You can do this by buying the house for cash at $130k or by buying the house subject to and helping the owner find a lender that will approve his new house loan with the current loan still in his name.

so make sure to ask when the leases are up.Personally, I would get pre-approved before seeing it.

For instance, one of our investor deals requires us to produce up to ten rehabs, fully tenant ready, Section 8 approved and tenanted every 30 days.