Now, I have borrowed under similar circumstances (9%rate, 12month interest only purchase & rehab, 3points front 1point on back) But it was for different properties that I got at a great deal that I was able to retail.

They have been giving approval recently for change in station and if they're underwater because it has been an issue recently with so many underwater but it is for limited circumstances so you may want to look into it a little more because it may have more risk than a standard Sub2.

The problem with many of the houses in the New Orleans area is that there was a long moratorium on building permits while the authorities were deciding where and under what circumstances rebuilding was going to be allowed, if at all.

If you've seen this, what were the circumstances?

Ibrahim S,It is distinctly possible that it may be able to get it discharged.

Then, each of the next five or six years (five years of time is usually spread across six tax years) you take a portion of the costs for depreciation and reduce your basis by that same amount.Now, under some circumstances, fair market value does come into play.

Their "value" will be based on circumstances favorable to them, i.e lowest value possible.

Yes, there's some that only do non owner occupied but it's not a monolithic among hard money lenders so the fact that we're debating that point shows some want to be message board know it alls instead of just giving feedback.Saying the lender owns the property is a distinction without a difference.

If you're a successful wholesaler and want to learn about rehabbing, find a successful rehabber and offer to bring him a few deals in return for teaching you how to rehab.I've done #1 above for several new investors, and would always consider doing #2 if someone who could provide some value in return.That said, there's absolutely nothing wrong with paying for coaching under the right circumstances (the coach is knowledgeable, has real-world experience and is reasonable in his fees) -- but don't assume that you *have* to pay to learn this business from someone successful.

Seems like it's usually coming from those who never went through it from start to finish (either by choice or circumstance).