It is meant to point out danger zones where seeking true legal advice might help you.To sum up what has gone before:John mentioned that in a certain state: "Both lawyers were unaware of a state law concerning what is regulated by the state."

Mark,In danger of sounding like a wise guy, what do you mean by "doing pre foreclosures" and "doing short sales"?

. - I would like to think that's true, but it's a dangerous assumption.

These are usually confined to snowy northern states where moving in January is somewhat problematic and can be dangerous.   

That said, some of it is quite dangerous. 30 seconds for safety my friend.

Good luck @Darwin JimenezWhile insurance would cover the majority of issues, it's dangerous to rely on it as your only line of defense.

If he was including the new HVAC and water heaters under his scope then I agree the electrical might should have been pointed out, however if the owner contracted for these items with someone else I am not sure that the contractor is responsible for electrical deficiencies that arose later.I think this is the danger in having a time and materials contract and sometimes it works sometimes its does not.

Can't wait to interact with you all more when I actually have something of substance to share.

That's a win-win.The only reason to consider that dangerous is if the OP lacks the education it takes to properly analyze the deal to assure a profit before going in and/or doesn't have effective escape clauses in their purchase contract.

There is a potential danger.