The asset itself could be real estate or any other type of asset -- stocks, bonds etc.Typically the seller, due to some life condition or circumstance, has a need to dispose of the asset quickly, usually at a discount and below actual market value for whatever reason. 

Is the guy Licensed and Bonded ??

The US is in a housing bubble, bond bubble, student loan bubble, and stock market bubble.

I suspect every state is different.. its not one size fits all for sure.and in Oregon on top of a GC license you as the owner need a DEVELOPERS LICENSE and you need to be bonded and insured as well. even to flip one home a year.. and they are really starting to crack down on this.. trust me I know I have been on the butt end of this LOL 

I dont have a savings anymore and just invest on autodraft into a bond/stock savings vehicle and easily get over 7pct every year.  

@Alvin Pereira I have a bond posted here for the Lee Co auctions.

The funding goes to the Sponsor, and assets can be rearranged (under terms of the underwriting rules).If the LTV decreases over time, we create another stack of bond, to another group of investors.

We enjoy it and it's a good bonding experience for the both of us.I get the whole "work on your business versus work in your business" mindset but how many other houses do you own/manage?  

. : )When Detroit filed for BK I did hear rumblings that it would have a ripple effect in the state because counties and cities borrowing would get higher interest bond loans.

Knowledge will strengthen you.