Aside from cash flow (and getting other folks interesting in investing) it seems to me that their biggest problem is thin-slicing: ie, knowing enough about the business and the market to size up a situation and have the confidence to follow-through on a gut reaction.

Now my question is: what is a good approach to follow when i get a list of REOs?

IF there is a written rental agreement, simply follow the letter of the terms and local law.

We followed an investor locally to his lender who works for a small community bank who does alot of commercial lending (commercial division).

Other states such as California could follow suit.Instead of arguing the merits of the rules, accept them and move on.

location and motivation seem to be good rules to follow.

you still have to follow the terms of your lease option agreement, so if things are not going as expected you can still be responsible for the rental payments.

These revelations followed closely on the heels of an Associated Press story reported on August 4th by the Austin American Statesman disclosing Carona's fiscal improprieties.

I do follow the tax sales in my area and when there is something of significant value, 99% of the time the listing is redeemed (taxes are paid).

I have a Terms sheet from them (actually the letter head is Quick Funding - based out of NY) and was worried about the large upfront fee they are requesting.I have found a blog/forum that talks about them a bit if that would help you - the ssite is as follows: http://www.brokeruniverse.com/grapevine/thread/?