:Asking price - repairs of an extra 100K on top of pro forma repair estimate puts me at an offer that's $100k below ask, which is what the contract holder (seller) paid for the contract.

I look at cash flow as cushion not as profit and tenants are place holders.

How does escrow affect us as note holders? 

@Ryan Moody Welcome, I am a buy-n-holder in Peoria.  

@Nathan Gesner, yes, but the question becomes does HUD just automatically pay the highest rate they show in that market, or is it based on what you are asking, making up the difference between what the voucher holder pays from their income and their voucher amount. 

I recently tried to purchase a delinquent land contract note from owner/note holder.

It's going to take a long time to get rates down to a good amount for the current low rate holders to flip, and it's going to take years to create supply in these desirable areas.

@Trey Knight  if you default with a second mortgage, yes that 2nd place lender can initiate a foreclosure but the 1st lien holder gets paid first. 

Current owner has a land contract and I have had deed-holder also sign listing agreement. 

Also, I shoulkd point out that charging for processing, preparing, underwriting or closing a note may put you in violation of law and in the event you ever have a problem arise you will then be taking on a professional liability that as a note holder you don't need.