@Michael Wright, a few questions first.

@Linda Lin, for my own edification, can I ask how or where you ran into this offer?

I knew another landscaper, mostly in Casa Linda and the White Rock Lake area who had acquired 50 rental homes in the area.

The collateral is worth 100K, the other 50K is outer space, not even blue sky, any discount starts there and a balloon requirement will make it worse as owner's equity is diminished or eliminated......unless that buyer is financially able to wright a check or pledge other assets to pay it off.I have also found that I get more prudent and better advice from attorneys who I don't have a personal relationship with as friends tend to stick their neck out a bit further in order to "help you", I can see the wheels turning, "oh, I can defend that matter for Bill" as opposed to doing things I don't have to defend.

As a child, about the only vacan house that I saw in my hometown (Yorba Linda) was a craftsman once occupied by some sort of scientific guy.

@Linda ArfiyantiWelcome.I will offer a third alternative the cash does not have to be yours you could work with private money and share the performance.Good luckPaul

Linda,I have to ask.

Linda, good question that could be the subject of a book.Obviously prices droped on any property damaged to the extent of repairs and the value of having the properties repaired.

That may be wrong or wright with other investors but that has typically worked for me...except for one house that I never made a dime on even after owning it for seven years.

Linda,I'd they take a commission then yes they would be benefiting from your IRA.