One example may be that the notes placed by Investor B have subordination and substitution clauses that allow them to be placed in a junior lien position or moved to a different property when Investor A’s property goes to market.2)Investor B needs to have assurance that Investor A is not interested in placing the subject property on the market within the terms he needs.3)Consideration for Investor A – If the note(s) held by Investor B has a term greater than a term that Investor A is willing to go, how should an agreement be structured?

I met with a broker yesterday who will do the legwork and one of the first things she threw out when in the apartment is that I could convert a part of the living room (L shaped), into a small bedroom to basically get to a junior 4. she thought that would raise the rent potential by about 100-150 monthly.This made me think whether I should jump in and get this done before putting on the market.

Hey everyone!

I'm currently in High School, but have been reading the BP forums, listening to BP podcasts, and have read a few books on Real Estate Investing (Manny Khoshbin's book + Rich Dad Poor Dad).

I start...

Recently secured my first rental property investment by using a lease option strategy to house hack while still a junior in college in South Dakota.

Any seller worth their weight in salt is going to want a much higher rate than the senior debt (junior debt is riskier, and therefore should command a higher rate) and the likelihood he'll want to amortize that over anything greater than 10 years is low.That being said, if you can even cash flow 1 dollar with zero skin in the game the CoC return is fantastic.

Don't think for a second that junior lien holders don't foreclose with senior lien holders in front of them.

A third seems unlikely, and it's worth making sure it isn't actually a second.If you buy that junior loan at auction, it may be possible to keep the first from coming to auction.

It may be a bit late in the school year for my comments, but some high schools have a concurrent enrollment program with the local junior colleges (including online courses) whereby you earn college credits while in high school.Best wishes to you!

I am obviously assuming that you are junior enlisted due to the question but maybe I'm wrong.  

@Benjamin CowlesWhen a 1st mortgage holder is foreclosing on a property to which the borrower is in default, then all other junior lienholders recorded on title must be properly notified as such.