Good luck on future endeavors.

Any ideas on how to avoid this in the future?

However, the SEC, especially in this gruesome economic climate, is always on the look out for any investment offering better returns than what can be attained through the stock market.

When EVERYONE is doing it (buying RE, investing in "tech" stocks etc) it quite often TOO LATE.

I plan to use them again in the future, would it be in my best interest to go ahead and pay them?

So, the lease purchase is a good option because: You get option $, you get rent $ and you get to sell the property at a pre-determined price (in the future).

on the subject of non competes...i have a possibilty to have a free mentor for the whole summer by working with with my roomates dad who is a real estate investor. his only condition is that i sign a non compete. if i am interested in buying property and investing in the same area he operates in in the future could the non compete stop me from doing so?

well, a lot also made a bundle on the dot com stocks - and a lot went bankrupt because of it!

They essentially take the lease option with the deposit on faith that they'll be able to fix whatever credit problems they have in the future enough to buy the house at a price above where the market is now.

If that is the case in your area, you need to be priced below the market.On future deals, I would try to buy at even a bigger discount to guard against a looming housing market meltdown and recession.Mike