I have checked and it is a boilerplate which asset management company is using nationwide including Massachusets and Hawaii.

The credit partner needs some verifiable liquid or semi-liquid assets for reserves.Although these are not needed for the deal to close, they are reviewed for verification use only (bank deposits, stocks, bonds, mutual funds, retirement accounts, cash value of insurance or other).The credit partners, if classified as “seasoned investors” can often participate in up to ten or more transactions per year.

Maybe even the agent will start calling you the minute they get they get the property from the bank before they publish the listing.The banks and asset managers have to sell through Real Estate Agents/Brokers.

Two others to look at are Asset Exchange Strategies and Guidant Financial.

Asset protection is the standard answer.

It takes time to set up new properties in accounting software, and document everything properly, and set up physical files for vendor contracts.

It could cost you all of your interest deduction, which may be tens of thousands of dollars.Another thought that just came up is the asset protection side of the coin in doing this.

You are renting.The capital gains treatment applies after you own the asset for 1 year.THough you could reduce your tax bill if you held title long enough to fit the capital gains tax treatment rules it might not be the best investment decision.

Holding long term is best done in an LLC where the asset's value can be taxes at the member rates (any pass through works in this case).

I have read many postings in this forum which indicates how much difficulties of dealing with asset management firms and such.