That's why I think paying $8,000 right off the top is a little extreme not to mention it will cut into my profit considerably.

@Jay Hinrichs  I think if the wholesaler offers TRUE CONSIDERATION for a contract, or option, that they would win a legal battle, if it came to that.

Thanks for the advice I will take that into consideration

HMLs are usually small companies, so rates and terms vary considerably.  

Here's the article: http://la.curbed.com/archives/2014/06/mapping_the_...My bets are on West Adams, Echo Park, Park Hills Heights, and Downtown, all of which are currently in the midst of gentrification and are primed to take off with the expansion of the metro.

Sometimes an asset owner in default will voluntarily give a deed in lieu to a banker in return for agreement/consideration not to pursue owner for shortfall (personal guaranty) on the debt after the asset is sold.

You set up a separate agreement which stipulates consideration in the form of equity for certain managerial benefits you provide.

The area is Cleveland Heights, Ohio, if any locals check in. 

Calif.) for my market these are the mechanics that have worked for me:•Establish the criteria for my previously qualified Buyer (REO’s, Short Sale, Price range, area, type of property, etc.)•Talk to Loan officer about: Down payment, Closing Costs, Rate, Monthly Payment, type of Loan. •Set up my local MLS with client’s criteria and the system will automatically select properties.•Revise properties manually and start showing to clients.•Once my client likes a property, then I work getting comp’s, client gets estimates for Repairs (only if property needs).•Write up an offer taking in consideration the points above mentioned, Lenders in some cases are asking for cross-qualification, before submitting an offer.•If offer ends up as one of the finalist (only when the property is price right), Lenders gets back with a Counter Offer and Sellers Addendums.•If your Agent keeps communicating with Listing Agent and responds fast, then you’ll get your offer accepted, after that time to get in Escrow.You may need to call local Buyer’s agents before you decide.Noe R.

A year down the road, with 75% LTV financing in place, the ROI on your investment is near 100%, year in and year out – before consideration of tax benefits and likely NOI growth.As Bryan notes, you can also elect to sell when you've got occupancy up to >85% for 9-12 mths, as a 12-15% cap, scoring a huge gain.