Long term hold, with buyer planning on carrying existing financing to term without the ability to quickly cure default — terrible strategy with huge risk for both parties.   

But ultimately the responsibility lies in my hands.I jumped on a seesaw of risk hoping that the momentum would catapult my bank account into six figures only to find out the hard way that flipping houses isn’t as easy as I had predicted.This house was purchased for $64,000 with an expected rehab of $100k to $120k depending on how much work the dilapidated and neglected house needed.The midwest is lovely but the houses carry the weight of weather storms nearly a century old leading to more damage than a beginning investor could expect.The appraisal came in at $225k for my lender meaning our all-in cost would be around 85% of the sales price worst case.

Our current mortgage terms include a late fee after 5 days, so they’re already paying extra each month and have to split the total monthly payment up between 2-3 payments when they get their pay check.

The guy on Youtube that boasts about buying properties with no money out of his pocket and using other people's money from his "community" to pay for closing and carrying costs, said in a video in June that he had 10 Due on Sale called in AZ alone from Jan 2024 to May 2024.

This would allow for a longer carry back with up front cash flow.

It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees.

If you don't have the extra cash, can you get creative with a private lender or partner stacked on bank debt? 

From an operational standpoint you might also want to consider the cost of any extra tax returns that are needed by the entity as well as any extra accounting fees.Good Luck!

Are people paying for extra flood insurance or other insurance?

So if I understand, you would get a loan the normal way and then the bank trust is an extra fee that comes along with owning the property in Mexico?