If you need to skirt the earnest money issue or try to hide the amount, you might want to consider a different approach or presentation to the seller.

Personally, I prefer a personal approach in my direct mail, so adding a company name (which I did not set up yet) might kill this personal touch.Any opinions?

Anyway, the correct way if your valuing by the income approach is to take the total yearly gross income, subtract all of the expenses except debt service (principal and interest payments).

Now my question is: what is a good approach to follow when i get a list of REOs?

Whether I am working with an experienced investor, or Joe homeowner I approach every transaction as an investment.

When I approach the homewoner, what price am I using to flip the contract?

It all depends on location...I have never done it, but in my area investors say they go for about $12,000 a monthHowever, you would be much better off spending $12,000 on highly targeted direct mail...it's better to have the rifle approach than the shotgun approach.

It is an incredibly simple concept.

I for one favour a more balanced approach.

As we approached the third date, we actually visited the clerk who told us that they had received the deed from the lawyers, but the check for the filing fee was $3 short, and the lawyers, rather than just coming in and paying the $3, had retrieved the deed and taken it back.