Dreams of starting with nothing, spending no time working on your business and having fat paydays are just that - dreams.

And we would make 15-20%+ over less than 2 months by lending them that money, a la payday loan or something of the like.Depending on usury laws, maybe it can't be a "loan" and will have to be structured/written up differently (like a merchant cash advance is). 

Let me try to explain...When you're rehabbing for profit, there are a lots expenses that go into the project (purchase price, rehab costs, commissions, fees, holding costs, etc) and then there is one payday at the end of the project where you get a big fat check.

Certainly we must be aware that idiots are alive and dreaming up the next catastrophe however of all of the thousands of appointments I've been on to buy houses only once did I question..That deal turned into a great payday.

Other than payday on closing, here is the best part of the rehab flip job!

And there isnt anything wrong with that approach as long as you have the ability to build relationships and the time to carry them to a payday.

Too many crazies out there looking for a payday.   

They just can’t manage money past payday.

Our other JVs can cash out after a year with a 20% return if they can't wait for the back-end sale...but again, in our model, our big payday is when the property sells off so our incentive is to work as hard as we can to make that happen as expeditiously as possible.

Though I have had poor response rate, I did one deal from my mailings which netted a very large payday.