The collateral interest assigned is different from an equity funded note than a note funded by cash.Any borrower/buyer who devises agreements to substitute collateral in an installment sale and convinces a seller to accept such an agreement is really crossing several lines, they can be terminating the contract, they can be inflicting undisclosed tax liabilities on the seller and they can be a party to fraudulently convincing the seller to releasing collateral as well as taking an improper security interest i a financing agreement.A substitution of collateral can be agreed to by a lender funding a loan with cash, they can release any collateral and accept other collateral interests.When a substitution of collateral is made in connection with a cash funded transaction between private parties, (an investor's LLC is not a lender and is a private party) that will be viewed under a microscope to ensure that sufficient value of collateral is the same or better and that such value is not based on the borrower's opinion.

Bankers and I/B, etc aren't all evil or fraudulent.

It is always better to hire GC with insurance and pay a little more than take the gamble because you might have a pro tenant who might step on a nail in a piece of wood the GC laid down and the GC has no insurance guess who they will go after.

On the credit repair companies, most are scammers or frauds, please read about Tradeline Pros in the RJ in Las Vegas; they are going to jail for fraud and submitting fraudulent info to the bureaus...Joe Gore

It would require dealing with an unsophisticated second lender in reality, if one were honest in explaining risks, there would, with a reasonable person, probably need to be some omissions of facts to get that lender to lend, then not only do you have ethical issues but you could be crossing into fraudulently presenting the deal.

The article shows who they are and how they operate locally.Patrick,Here "was" my take on the situation earlier in the year when I heard hedge funds and private equities buying foreclosures.The hedge funds and private equities are gambling with OPM.

With your house paid off , you can sleep well at night , I dont gamble with my primary , if everything goes south , I still have a roof for the family .

Don't gamble with the money you can't afford to lose

Will you tend to be super picky with tenants, or be willing to take the first gamble that meets your qualifications (since they are all truly gambles anyway)?

If you want to gamble with your money, go to Las Vegas.