I've been reading the forum, and reading up on the subject for the past many months, so I know enough to be *dangerous*...Here are the details.

Here is one that doesn't happen every day but will if you look at enough real estate.In 2004 I purchased a home "subject to" with a loan balance of $179,000.

Thinking about this subject more...if you are sending an offer with around 30% below fmv, what if the repair cost (which you haven't assessed yet) are more substantial than you what you offered?

I think it'd qualify under "networking".Back to the subject, those were definetly funny phone calls.

Example: “subject to inspection report acceptable to buyer” or “subject to favorable inspection” etc. 8)

If you are concerned about what may be wrong then you should put a clause in that says it is subject to inspection.

The subject property is not on the market.

And the only way to figure it out is to get data, data, data.Perhaps we can all agree that having a simple to use rule of thumb like the "50% Rule" is great to do a first-pass approximately of a deal, but that nothing replacing a full due diligence and financial analysis before actually purchasing.As for Bryan's other point about analyzing discounted cash flow (what some people refer to as net present value or NPV analysis), this is something that is tremendously important if you're going to be investing on a larger scale, and it's sad that more investors (in my experience) don't have any clue about NPV and its implications.I think I'll write a BP blog post on the subject, but suffice it to say, anyone reading this thread that doesn't understand NPV should do some research on the subject...

If you are going to own the property in your name and have the LLC do the management (collect rent, pay bills, maintenance), then that will be considered ordinary trade or business income and subject to SE tax.You would want an S-corp to do that.

(false evidence appearing real) that comes with the first deal, but I can't seem to bring myself to buy in on three Comparative Market Analysis that have been performed for the subject property.