In many states it is considered predatory targeting preforeclosures and also marketing as if you are "helping the homeowner", as based on what you are saying it does not really appear you are helping them but performing a service to them for a fee - big difference. 

If you are unable to perform at that point, you may end up walking away from all your rent credit and any "equity" you may have built.

Group’s core business strategy centers on their ability to acquire Commercialand Residential Real Estate, Performing Notes, and Non-Performing Notes at belowmarket prices and terms, and then apply development, management, and marketingexpertise to produce a higher ROI for their clients.If anyone has any questions regarding buying bulk reo's or non performing notes please contact me.

There are some great non performing/sub performing paper deals out there right now.

Liquidated damages or specific performance?

Win-Win for you, the other agents, the broker, and the seller.Now if you want to play games like a lot of wholesalers who don't have money to close, then your broker may not want to sponsor you if you are going to contract on deals and not perform if you can flip the contract to someone that does.

I measure my performance slightly differently than others.

The safe harbor is subject to the Ten Year Rule (expected to perform the maintenance more than once every ten years) and the No Betterments Rule which basically excludes large capital improvements that significantly extend the useful life of the property.There is a heck of a lot more to it, but in summary, keep your repair, maintenance, and capital improvement expenses in separate buckets and back each up with appropriate reasoning and documentation.

So, I could conceivably certify a 1-yr owner occupant, perform a live-in rehab, and re-fi at 100% appraised value?...

., loan underwriting) or a robot that does a job formerly performed by a person, I can make a lot of money.