We talk a lot about free markets but in reality we are a highly regulated market with a fair amount of bureaucracy.I also agree with you about other countries being better for wealthy people in terms of their tax policies.

Owner financed properties don't have the same regulations and requirements.

I'm weary of anything that comes from a guru, so if you're using techniques taught by a guru, make sure you run any advertising you do surrounding soliciting private money through your attorney to make sure you're not violating any securities regulations.

You also need to inspect the entire building and grounds, because that all needs maintained, ALL of the hoa paperwork: Articles of incorporation, ccrs, bylaws, rules and regulations.

For any institution that is federally regulated, they can not sell a note other than to another fed regulated institution unless it is at the borrower's request/direction.

It would be best to do proper Regulation D securities filings.

Some attorneys advise that a lender can make a residential loan if they use the services of a licensed originator or broker, but many lenders feel it's no longer worth the hassle.By the way, these restrictions apply to owner financing - investors are now regulated when they sell their own properties to homeowners with seller financing.

Jim in the commercial arena they care more about the income of the property to qualify the asset instead of the credit score of the borrower.In the residential market qualifying with bad credit is much tougher.Banks are highly regulated now on the commercial side and are very strict.You might want to take the cash after selling and parlay that into larger commercial deals.You could also use a private investor as some would loan you money with the properties paid off as collateral.

I heard attorneys manage these foreclosures, and I would think they would be sticklers in doing exactly what the regulations say they should.

The "50% rule" simply says that operating expenses (per IRS regulations) plus vacancy (actual or economic) plus capital (expenses you incur in one year buy must amortize (deduct) over multiple years) will average out to about 50% of the gross scheduled rents.