The market has been appreciating steadily in Knoxville albeit slower than the national avg. it does boast a low unemployment rate and jobs appear to be historically steady with projected growth.That's the extent of my market knowledge.

In a rental environment, Hard Money works well when you find really motivated home owners and need to close ultra fast... or in situations where the homes need a bunch of rehab.

Just something to boast your capital.

I figure there are three options:(1) get an agreement from him, get it inspected, buy it for cash - that would be ultra-fast and get him out of trouble - only of course I don't have $180K lying around(2) help him get paid up for all his debts in exchange for him selling the house to me, and then I get traditional financing - what are the exact steps here, though?

I had a file folder (a real one) that I put all receipts in so it was easy for me when I got a computer (back in '95) to make an Excel file for each property and category.I'm an ultra-conservative (financially) guy so I always was concerned about taking no too much, and too high a proportion of debt.

I firmly believe it's about creating opportunity and if I can't compete with the ultra wealthy and experienced investors I am going to find a niche that gives me an advantage or at least allows me to lend value to those sort of investors so I can tag along until I make it. 

But they were in the ultra-competitive sub-$200k price range so their story isn't typical.

Even in ultra-consumer friendly California, a “civilian†can write a note secured by real estate so long as it does not violate usury.

Jason D,Seems to me you got ultra bargain since you bought for deposit which is probably only a few K.

I'm not bringing it up to boast, but those who have business experience outside that preached by some guru program will be able to succeed in real estate.