., however we find it to be pretty effective on dialing in what should and should not be considered. 

Two other very important factors not mentioned or given short shrift are the 1) high unemployment/underemployment rates and 2) the dampening effect that the housing crisis has on people's propensity to buy.  

Since I have been playing for a while and the industry is getting smaller due to regulations which reduces the traffic and the number of recreational players (which makes the game less profitable) I think is the moment to start transitioning to Real Estate.I am literally devorating everything in BP, just bought the 2 books of Brandon Turner (hey Brundon if you read this just let you know that I love the way you explain and the methods of teaching you follow, I really find them effective for newbies like me) so I will be trying to educate myself in RE as much as I can in order to be succesful in the future.If there is someone out there who is also starting in RE, in spanish market and want to connect me to talk about whatever or just for future networking, dont hesitate to do it!

I am not referring to properties where a LIS or NOS has been issued but the owner still maintains control of the property up to the time of sale. 

@Rob Nichols, the main reason I believe you ARE worth (at least) a 50/50 profit sharing is that I believe he will be paying himself along the way out of the $500k development "cost", which means that anything less than 50% to you will mean that he is double-dipping.You should not underestimate the value (and risk) of the $350k that you are effectively providing.

Details: North SJ, near the future BART station, town home, 2BD/2.5BA - 2 master bed rooms, low HOA and well maintained, near future developments and another town home complex to be built nearby, ~1100 sq. feet, decent school district (Piedmont High School, 4/5, 10/10 on Redfin), 1 car garage and 1 carport w/a private patio, close to Target and other shopping areas, laundry downstairs and in the building.

It is a decent area, and the complex is very well maintained.

I still think the FED will be very hard pressed to raise interest rates substantially, because of all of the negative effects, savers be damned.    

Once you have a portfolio, THEN the cost and effort to maintain an LLC *may* be worth the effort.Be advised, it's $800/yr to keep an LLC in Calif AND the list of members must be filed annually.All the seminars taught the legal entity stuff (usually due to the vested interest in 'helping you') but IMO a good landlord insurance policy + an umbrella policy is sufficient for "well behaved owners".

I've done a few deals with seller financing on commercial loans to effectively reduce the downpayment to less than 20%, so shop around with local banks in that area.