If the contract doesn't indicate that clear ("marketable") title be a precondition of the sale, you risk losing at-least your earnest money if the title is clouded and the seller refuses to clear the liens.

So, all told, we didn't lose money on the deal, but we didn't make much either.

It will be easily the best beginning decision in RE Investing you could make.

It hurts losing so much money.

One interesting section of the article mentioned that you would definitely lose money if you are moving every couple years.

It includes 3 apts that will rent easily and pay for all my expenses.

I've noticed the job market has been tough with 5-6 tenants losing job/laid off in the last 1.5 months.

There is a lot of ways to make and LOSE money in this industry.

You want to easily evict your tenant buyer if they stop paying, but you want the deal with your seller tighter.You would, hopefully, collect a relatively large option fee from your t/b and give a small one to the seller.

Losing an occasional deal is just a cost of doing business and I don’t expect to be paid for every phone call (Yes, I’m exaggerating).This topic was also covered at length in this thread: http://www.biggerpockets.com/forums/22/topics/65735-how-to-verify-private-and-hard-money-lendersThere are many problems you can protect yourself from.