I do not recommend a Rule 504 as they are not recognized by many states.

Recognizing the time value of money, it is the discount rate at which the present value of all future payments would equal the present price of the bond (also referred to as “internal rate of return”).

In the lending world there are basically 2 types of loans for these properties - "Conforming" loans or "Portfolio" Loans.A "Conforming" loan is a loan governed by Fannie Mae and Freddie Mac (if you recognize those names).

Your sub ask for 50% up-front, but you couldn't verify his experience and you have never done business with them, is cheap, and is not a recognized contractor.

Or, forget all this high brow stuff and just go with what has worked for others - even the Farmer's Almanac often gets it right because it recognizes that even if you don't understand why, you should often pick what worked in the past ... it's more likely than the alternative to work again in the future.And is it ok to buy free cash flow-negative properties? 

As I'm reading people's responses, I recognize a lot of people aren't setting specific goals with regard to real estate.  

Then if you're ever sued, at least you will know that you're working with an Ohio lawyer who setup an Ohio LLC so you'll know you're in good shape.Keep in mind certain states permit certain legal entities and such that other states might not even recognize.

They've put together a very professional looking offering with a lot of data but of course I recognize it's incumbent upon investors to do their own due diligence.

That is a related observation.The fact that the same thing is happening across multiple markets just confirms nationwide low inventory.When you add that to overpriced listings and cap rate compression in the face of record low interest rates,that has to have you worried.If you've invested across at least 2-3 RE cycles,you can't help but recognize the feeling of deja vu.

If I'm doing a mailing, and recognize a name I don't send them my standard letter.