Assuming he is a licensed real estate agent, he could be subject to some serious problems...moreso if his "rehabbers" don't have their proper contractor licensing!

I would however consult your lawyer and get his advice on the subject.

Since you have little money, learn how to do subject-to, lease option, and wholesaling.

You want to deal with the homeowner so you can take over a property subject-to, do a lease option, or another creative idea that no bank or Realtor will ever allow you to do.

Freddie Mac recently announced guideline changes that will greatly affect residential real estate investors.Beginning August 1st, 2008 the following changes will go into effect:A borrower may not have more than four financed 1-4 unit properties, including the subject property.

I am now in a situation where I fear vacancies in my properties to the point of not being able to cover mortgage.

Take out a HELOC to cover 20% down on a new loan2.

Discount depends on how you are buying the property-are you paying cash, are you doing a subject-to, a lease option?

Unfortunately, it doesn't cover all 50 states!!

Buyers can walk from any contract in the state of calif in 3 days regardless due to the current case studdies, Most don't know this though.It's just as easy to just make no deposit or a token deposit.Of course once you have your reputation then you can do these with no deposit almost every time.If your going to put in a clause for inspection 3 to 5 days is more than enough to get an inspection done anyway.I do my own inspecting for properties that are within 5 hr drive.If it's beyond that I hire inspectors with a contract covering liabilities.