So Efrain can get his cash back and profit back so he can buy another wholesale deal and rinse repeat.This model seems to be surfacing all over the US all of a sudden.. its an old sweat equity model that has been in play for years... however with all the new rules these notes are suspect in many ways.. form an origination standpoint etc.

At $10,000 I would still be sweating. 

If I rehabbed the property I could get a little sweat equity out of it.

Banks are logical and not emotional (unlike sellers, who often think the property is worth more than it is, simply because of sweat equity, the memories they have there, and the list goes on, etc, etc).To conclude, always work with a real estate attorney who specializes in Short Sales.

Would you be willing to put up the cost of your "sweat equity" as your investment in the deal? 

I will use my skills to renovate it for some sweat equity and then rent it out for an additional stream of income. 

Some great type of purchases include the following.Purchase: $80k-$130kRent: $1200-$1500ROI: 10-14%Cash flow: $250-$350/doorAppreciation: Double digit (for past 10 years, will gladly send data)Location: C, B- (suburbs and certain markets)You can then refinance these if they’re sweat equity pulling out most of your money and brrrrr’ingWe have over a dozen Fortune 500 companies just in Metro Detroit with huge Healthcare, Auto, mortgage, Amazon fulfillment, and more jobs.The bad reputation comes from OOS investors wanting $20k D market properties.

COC, NOI, Payback, sweat equity, etc.Step 9: Lets find a Deal: Build your network, but for now lets look at properties that are actually for sale.

If you can find a deal on a fixer and add value/sweat equity- that would be the way to go.

Personally, I find more passion and motivation to improve the guest experience, put in sweat equity and come up with creative ways of improving the property to make it more attractive if I love the area.