My question will help an investor client of mine interested in purchasing 18 builder closeout units in a project and would like to lease/option them.He was willing to give 80% of their rent toward the equity, and price the property at current appraised value, with 8% increase per year for the 3 year term.With the mortgage mess, this may help sideline buyers get into a property.Any thoughts on where to find these hard to finance people?

It's very easy for someone to sit on the sidelines and examine things that others might be doing wrong.

I always had another “job” and did investing as mostly a side line.

The realtor can just use this partnership as a sideline, and go his merry way doing more conventional deals, feeding you information and also helping when it's time to sell your properties.

Certainly...I am not coming at this from a sit-on-the-sidelines passive angle.

Thus you punch in an ROI of an alternative investment that you assume you can earn with that cash that is kicked out to the sidelines.

In other words, is this a good time to sit on the sidelines, build up cash and wait for things to bottom out and pick up properties for pennies on the dollar, or just keep hunting and pecking for good deals?

I am not a stranger to the pitfalls of this endeavor as this is probably what has kept me on the sidelines to this point but I know there is more to learn about these pitfalls and how to avoid them before I buy my first house.

Ultimately, I just want to get my feet wet doing almost anything as I can not afford/bare standing on the sidelines any longer.

Andrew, I see what you are saying about people not having the downpayment/funds for a property being able to get in the game, but there is money on the sidelines right now.