So here's my plan..

[Alex Locklear]

After reading/researching/taking it all in with investing, I'm finally at a point where I believe I know what I'm going to do.

After reading up on John Alexander and the " Inverse Purchase System" I decided it would be best to give this method a try--not much money involved and seems to be quite rewarding if done the right way.

I plan on locating a property with at least 20% equity--either from a wholesaler, other investor's , or people looking to get their home sold fast. I plan on putting the home under a few weeks option period and locate a specific type of buyer--those who can't get qualified from a bank or mortgage broker due to their credit score. With the inverse purchase, I can get a home at a discounted price under option and sell it to a credit challenged buyer at full appraised value.

Example:

I'm looking to put a home under option contract for $62,500 and find someone who can't get qualifying ANYWHERE else except for myself to pay the full appraised value of $85,000. We then work with a company who specializes in note buying and they come in and buy the note from the seller at closing for about a 15% discount. Thus on a $85,000 sell with a 15% discount, the note buying company will pay us $72, 250 in cash. I will make the spread between the difference of the contract price I had with the seller and the contract price I had with the end buyer. $72,250-$62,500= $9,750 profit.

I know that wasn't the greatest explanation of my plans, but you can get the gist of it all.

Has anyone done anything like this before? Any thoughts?

Thanks and wish me luck