We are note INVESTORS.This is important, it is simple thing to explain this concept to prospects as we buy real estate notes and mortgages AFTER they are originate, closed, recorded at the county seat and in most cases, after 3,6,9,12 months of seasoning.

He was all excited about this great new concept he had.He would buy a bunch of tax liens with a sizable amount of cash he came into.

some one has to payoff existing loan --Yes-- best to do a Lease Option ( new concept ) long term lease --3 or 5 years -- qualified tenant ( see response from Ms Rolanda above ) --then hopefully price will go up and he/she ( tenant ) can refinance --make sure to give tenant a credit for 50% principal reduction --And add 3 % to price and put in contract --that seller will pay for closingcosts -- i.e. credit 3 % --if tenant buys --You --as wholesaler Flip ( Assign ) the L/P Agreement to tenant.You collect only 5 % and keep as your fee -- keep 5 % in an escrow or give to current owner --Do not forget to give Credit for 10% down payment -- in writing incontract ---- may have to pay interest on 10 % Who will pay for the Repairs --- during the 5 year lease term ?

I am very familiar with the overall fix and flip concept but I need to make sure I am clear on everything so I can move forward when I find a great deal.

Some of the info is a little dated (ie. before the recession), but the basic concepts still hold true.

I really like that 4 boxes concept it makes it all very understanding thank you!

I like the concept and I was thinking about medical office space at one point, but after seeing many medical office space go vacant for years before they are rented out makes me worried...appreciate any feedback or advice you have, thanksMJ

But maybe there is a simpler/better way of doing it?

I understand the concept... but if someone pays off the back payments how does that person get paid back when they can't pay off their mortgage payments to begin with.

I asked him to create a lease and "contract for option to purchase" or CFO in Texas, where the option is held in escrow.Here is his response (name withheld)START-----Brian: The concept of a "contract for option" is very interesting.