In a rental environment, Hard Money works well when you find really motivated home owners and need to close ultra fast... or in situations where the homes need a bunch of rehab.

In the past year, we have surrounded ourselves with experienced professionals and invested in resources to educate ourselves in order to adapt with the continuous changing Real Estate environment.

Originally posted by Joe Foster:I'm looking for creative results, criticism, or similar ways of getting lower down financing by getting money back, etc.As Bill pointed out, you're not going to find a legal way to do this in today's lending environment...even by being "creative"...You are in-essence creating a non-arms-length transaction to arbitrarily increase the value of the property and then try to convince a lender to lend against that increased value.If you think you can find a lender that won't have an issue with this, than that same lender shouldn't have an issue with just funding the higher amount, right?

The manager at McDonnalds gets XX dollars, the district manager gets XXXX dollars, while the DM concentrates on other aspects at a higher level, he's still in the resturant business.Starting out with the thought of doing turn-around projects of that size requires extensive knowledge in building regs, community relations, understanding the political environment, marketing, law as well as purchasing aspects.

Ladies and gentlemen I hate to admit it but in this environment if you are required by a "lender" to have your client deposit an upfront fee then run!!

A good broker will have a well thought out underwriting process, a strong understanding of the legal environment in Texas, and an established network of borrowers looking for loans.

Peter,Welcome to our community, I like you, am fairly new to this site, and for what I can see it is a good environment.

Although UDFI/UBIT can exist in the 401K environment, in the example you describe, there is NONE.

Obviously, you will be dealing with people who are not credit worthy, otherwise they would not be willing to pay more than the house is worth and more than a house payment would be in this environment.

I appreciate your points made and am Simply trying to point out the many strange "distortions" in the macro environment, and imo caused by "cheap" money.