I've constantly had my eye on the quick, big prize of flipping properties but have recently had a reality check and realized that maybe this isn't the best route to go.

On the other side of this deal, you have a lease option "buyer" who is paying more than market rent; paying a higher than market price for the house; and in reality will never buy the house because they will never fix their credit.

If the tenant buyer does not exercise the option, walk away, or re-sign a lease option and try again (if the owner is fine with it)This is all in theory, I have never put this into practice (I am only 19 and cant put property under contract in Mississippi until I am 21) and I don't know the reality of this idea, but it seems like it could work if you can get the right terms.

In reality, yes, the option price is out of your pocket and I'd say you have the reality of it rather than how these are promoted.

In reality, agents usually give a client a choice but then they will add comments how well someone has done in past transactions and the relationship the have, the client usually goes with the agent's selection.

Many believe that a year long lease locks the landlord into a lease agreement but not the tenant, who in reality, can break the lease at any time.

Finally, you weigh the potential profit in each scenario with the amount of work/risk involved, and decide what the optimal rehab scenario is.In reality, you should be running dozens of potential scenarios (not just four), but you get the idea...

Buy low/sell high, rinse and repeat.In reality, there's much more to it and I wouldn't go it alone into the market without some hand holding from an investor who you trust.

Account Closed I think you're learning about the reality of wholesaling.

But we borrow $ using trusts and LLC's all the time.The reality is, even if you have it in your name, just long enough for the financing to stick and then move it into a trust, you have created the entire trail anyone would need to connect the dots and subpoena disclosure of the trust beneficiaries.I encourage anyone using the strategy Kris describes to make sure you have competent legal counsel who is very familiar with your investing strategy.