Also, flipping is a cash now strategy (making small sums of 5-10k) where renting and selling on a lease option are the bigger paydays of 30,000 +.

No big pay day.

Heck, I'd bet 90% of the US population is within 3 missed paydays of losing their house and car, everyone is living paycheck to paycheck.

Good old fashioned hard work, some sweating, some scrambling, a lot of praying and a hell of a pay day.

This will give you a little cash up front from the option payment as well as monthly income and a big payday 2-3 years from now.- Flip a single family house with NO MAJOR REPAIRS.

It isn't the biggest payday but you still get to profit from finding the deal.Use a hard money loan to buy and fix and then get a conventional loan when you are done to payback the hard money loan.

When the buyer converts the option, you should have a nice payday as well.

I'm pretty sure that Ryan is correct about the usury laws, and anyway if you charge so much interest that the investor who's borrowing it can't make a profit you'll end up with a bunch of property that you don't want.I've made some HMLs and I've never charged anywhere near those numbers, although with points and fees I make sure I'm NETTING a very nice return.For those kinds of numbers you have to become a "payday" lender.

Let me give you an example on buying a house for full market value, with no money out of your pocket, picking up a quick $5k up front, some positive cash flow every month, and a nice payday on the back end.... plus where talking about dealing in NICE homes....NO junk properties!

If any of them do have a change in their job and payday, we would work with them to pro-rate the rent, as @Jon Holdman described.