Of course this meeting is also a qualification period where we make sure that the individual actually has money to invest, is motivated to buy, and is crystal clear on our process. 

After helping other people buying and selling house for a while, he jumped right into the market and bought 3 houses in a short period of time.

I visit periodically to visit my parents and scout properties.

The bucks running around with a cell phone and a truck are guaranteed to screw it up sooner or later because they don't know how to run a business.... they also get desperate and stupid and will sign contracts with iffy P&L ramifications.

Many people seem to skip this step with subsidized tenants thinking "well some/all of their rent is guaranteed."

With commercial deals, generally the debt is non-recourse with no personal guarantee unless you do something bad called the "bad-boy" provision.The investors receive a preferred return of 8% and share in back-end profit.

Hi Billy, The BP Podcasts are full of examples of people who survived the latest downturn (2008), and I've always found it interesting to hear the stories of investors from that period.

You'll have a little recapture tax for the depreciation during the rental period though.

The second house was listed on a auction website for a short period of time.Third house also hit a auction site but only for one day. 

Use this as a learning experience, don't expect this to be a huge win.PS: My philosophy is if I'm going to spend money on due diligence and legal fees (since this is almost guaranteed to be a FC play) then I'd rather do it on an asset that's worth 40-50k+