It is an exciting industry with highs and lows but definitely do believe educating oneself on what to look for, how to analyze and structure deals are essential factors in a good deal vs going belly up!

So how can the distinguish whose using what?

The 50% owner-occupancy rule is actually specific to an investment purchase, so it's really key to have somebody who knows how to distinguish Fannie/Freddie guideline from an overlay.

I have no idea how to analyze this, even if its not a good deal I'd like to know how someone would analyze an owner finance deal and distinguish a good deal from a bad one.

You'd have to distinguish a closing as an exchange vs. a sale.

:lol: How do you distinguish between the two?

Your question, @Shanna Zeiset, and some of the responses here, are good examples of why it's dangerous to distinguish between a hard and private money loan.

This is very important to distinguish because if you have income resulting from the property and you have expenses, you can write off expenses to the extent of your income (I believe this is accurate but someone correct me if I am wrong please) but you may be limited in your ability to deduct your losses against other taxable income resulting from your "other career".

This way you will learn to distinguish the good from the bad and therefore prime your way to healthy returns.

So buying low, then reselling higher... and NOT ending- up PERSONALLY "over leveraged," whilst making the BANKS most of the MONEY... as at the end of the day their rigged "system" is designed and constantly "readjusted" to do precisely the OPPOSITE of making the 99% "wealthier," so WHY limit oneself to ONLY PLAYING their games?!)