Alternatively, can anyone find a note investor to do the deal for me it over 5 years or so?

From a federal view point, anyone making a loan on a residential property will need a license with few exceptions.It will probably be easier for you to find an existing mortgage broker and work with them.While recent laws were enacted with a consumeristic public cause, they really help limit competition and alternatives that benefit banks.

An alternate title for my post could be 'Flippers and the Law of Diminishing Spreads'!

Since you are not a lender, most likely you will need to find the borrower and have them provide you with a letter requesting that the bank sell you the note as an alternative to foreclosure.

Joe,As Jason stated, never jump into an investment without a plan and alternative exit startegy(ies).

@Ashton - Your last response mentioned several financing alternatives to hard money all which would require your own cash (as you should do) into this deal.

It's much easier to sue the GC for your lost money (the 150%) and try to force a settlement.The alternative is to do nothing and pay twice for the work.

The alternative is to wait until they leave, stomach the mortgage yourself, and market it without them in the property.Your state likely allows for lease/options, AITDs, etc. that you may look into as well.

This strategy definitely works and is the RIGHT thing to do as an alternative to what the banks SHOULD be doing in the first place - allowing principal reductions!

The alternative is to invest in someone else's enterprise and let them take all of the upside that is skill-based.