Any Thoughts on Mohawkreo.com?

[Dan NA]

Hi all, I recently attended an event thrown by a financial club I belong to and was presented with an interesting financial opportunity. The company making the presentation basically buys a bulk amount of houses for about 20k (these are not the best houses in the world) a piece then turns around and sells them to investors.

The investors buy the house (clear title) and then a property management company finds a buyer occupant for the home in "as is" condition. Basically the investor is the bank and sits on the house and seasons the note anywhere from 6 months to a year and half when the property management company turns around and tries to sell the note at about 65 cents on the dollar.

The concept is interesting and of course there are risks. Right off the bat carrying costs (taxes etc while they find a buyer) and the possibility of eviction if the prospective buyers flake out etc.

I wanted to see what people on here thought about this sort of investment opportunity.