I am a commercial real estate broker specializing in investment properties.On all my listings there are always buyers trying to do hair brained ideas.Generally the buyers putting forth vanilla contracts with no junk with proof of funds valid within the last 30 days gets the deal.Sellers will not take offers on a long shot financing or deal structure when stronger buyers are in line.

I believe he said he has done some transactional funding, if so, using such investments as an opportunity costs might be more valid, obviously it's an acceptable risk and experience level for him.Walk away Rich, no, don't walk, run!

I don't think you are missing anything and it is rational to see that the playing field narrows if you feel like this is a valid comparison.

If they come back saying they never got it, I have proof of when it was sent and the bank will reprint it if its never been cashed.Regardless of what you write, the check will probably be valid unless you actually put a stop payment on it, and even then, you'd still be responsible to get their deposit to them if they requested it.

As long as the contract is valid and no fraud is taking place, the title company is happy to close the deal.

We can certainly point out the lack of cash flow as a buy and hold, but we really can't say it's not a profitable transaction in the big picture.Jon is correct in his assessments, his method is valid, but IMO not the only way to assess the potential of a property.

Although I have not been affiliated with a RE Company for a while, all I would need to do is complete some continuing education in order to keep it valid.

But my point is still valid.

Here in CO you always get a "special warranty deed" from the lender when you buy a REO.

Your theory has a lot of valid points.Also consider a few counterpoints - tight credit makes a lot of those who were able to get financing for a home no longer able to do so.