There having "technical difficulties"for the last week almost.

If they cant qualify today, find out what is lacking, and have the RMLO state that in a letter. 3. the tenant buyer has "skin in the game" from the option fee, so they are less likely to damage the place. 4. the seller should do a walk through and inspect the place regularly, like every month. 5.

His comments above are filled with a lot more advice than you may realize at first glance.The only thing I'd add is that this isn't a business for the thin-skinned.

One is so I had a decent amount of skin in the game from the borrower, and also to make my note more valuable if I ever needed to sell it.

Assumption is a renter will not take as good care of your place (especially if you're a distance away) as if they had skin in the game for ownership.

Can you work in RE with bad credit, yes, but it is more difficult and it will limit your opportunities in many aspects of trying to do business.Are you good with people, can you approach a college professor and speak to him and gain his trust in what you are saying or do you have difficulties and only work orcommunicate well with just certain people, then do those certain peopleneed a property or own property to sell?

Even with flipping if you use hard money the lender will want skin in the game ( money down and points ) to do the loan.The reasoning is if the rehab gets tough the HML wants it to be painful for you to walk versus just handing it back to them.A good contact for flips is J Scott on here.

More scope for getting the rehab numbers wrong, risk of it not making it to 100K on the after rehab appraisal, and the possibility of difficulties getting a cash out refinance, which is harder than getting a straight up loan for a new purchase.

You may have difficulty in with an appraisal for financing, FHA will require it or something so that water doesn't pool or splash near the foundation.

You typically need to have skin in the game, but at the same time you certainly don't want to drain all of your personal reserves if you don't have to (i.e. if you used up all of your reserves on a traditional downpayment w/a bank - not only would it be gone, but then what's next?