I also explain to them that I won’t even send a collection company after them, I’ll just RE-register the order every 5 years at expiry and one day they’ll find me asking to pay.. and how I am the only one who can remove that collection order ... all this happens before lease signing as prevention.

If you receive a $1,000 in rent you have a $1,000 in income (before you subtract expenses,) the irs doesn’t care if you deposit in in the checking account, gamble it away, lose it to a pick pocket, or literally light it on fire. the only advantage to putting the extra cash in a separate savings account would be to prevent stolen/fraudulent checks on a large account but I live with that risk and sleep just fine. 

Some purchasers have tried to buy the redemption right to prevent this from occurring.

I heard another investor on Bigger Pockets say that too many people let the 1% rule prevent them from getting started.So I thought I'd start a discussion to hear stories from people who have made a deal that didn't at first meet the 1% rule for a rental property nonetheless turn into a profitable investment.

Most title companies are hip to it so most will leave off the last 4 numbers from the wire instructions and ask that the sender call in for the final 4 numbers to prevent this scam. 

If you didn't prevent how could you use what you have and learned to propel yourself forward.

Getting really clear now (both with regards to your business relationship and gameplan) is going to prevent a lot of fires down the road. 

My experience is that nine times out of ten even if you can find these people they will not talk to you or there will be some other issue that prevents you from actually acquiring the property. 

I also set aside some preventative funds before "distributing" cashflow, as this is going to give me (and my partners) the best expectations and most stability in our investments and earnings.However, most people who are advertising to woo clients are not doing that because they would rather promise you $400+ in monthly cashflow per door and then experience $200/month in average "Cash calls". 

Prevention is far superior to solving a problem....Now ask me how I learned that!