The repairs made by the buyer add to the value of the collateral, which benefits the holder of the LC.But the LC investor is stuck with paper that they'd have to take a huge hit on to unload, if they could find any buyer at all, since the loan amount is small and there is little or no true buyer equity, certainly no equity under a "quick sale" valuation (30-day sale) that most investors would want to apply.So it can be a great investment with very high ROI if viewed simply as a long term hold.

Your seller can state what they will accept and then turn that over to the originator.What happens if your seller/note holder dies and that note goes to an estate situation, it ends up in bankruptcy years later or the holder needs to sell the note and the note is found to be in violation of law?

In either case you insurance agent is not right, selling means you are not a landlord, you become an additional insured or as a lien holder on the buyer's policy, or you add them as an additional insured on your policy.

Rehabbers or buy/holders?

In the wholesale arrangement, you become an equitable interest holder in the property, thus, you have every legal right to sell your contract, or re-sell the home.Wholesaling in NY or any other state for tht matter is not illegal, what becomes illegal is using some illegal technique to wholesale.

Of course I'm a holder.

For half the loans they have they are probably servicing and not the holder/investor.

It was a short sale with code enforcement issues with the city that took a lot of hours to resolve over the last few months and a lot of negotiations with the first and second lien holder to get it down to the current price (I guess a contract at 4.7% of the unpaid balance isn't the easiest thing to get them to swallow) so it wasn't just an easy just an easy purchase.

An option to purchase, on the other hand, is a unilateral contract which gives the Holder the right to compel sale of the property at certain price within a certain option term.See your local Real Estate attorney that has deep experience for your state.And, there is no "Due on Sale" Jail.

I would consider the 10% "icing on the cake", not visa versa.