That $500,000 rental in California also has a MUCH higher eviction expense; higher property taxes; all kinds of socialist government registration fees and costs that the Ohio rental doesn't have, etc, etc, etc.

hey there jerome..welcome to BP...to me, your definition of what you do sounds like some guru pitch out of a book you just read...not sayin that's the case at all, but if that was the recited speech i was told on the phone, it would not lend much credibility in my mind...for what it's worth..

It's another prime example of the government trying to run things, but ends up ruining it for the average person.

Now the chinese government has a whole pile of US Dollars.

One other thing, research and a knowledgeable conversation gives you credibility to your attorney for the right step forward.Andrew, after you talk to your attorney you will quickly realize why note gurus must not go into these issues in a blog post and that the acedemic “technical detail” info received thus far falls way short of the topic issues.

Colleges, especially college housing, are very skewed by financial support figures and cheap Government money.Additional housing in your area wouldn't hurt rents as much as it would decrease dorm occupancy.

The two big questions I had were 1)If this strategy catches on and the government closes the loophole of paying no taxes when borrowing against a life insurance policy then you are screwed and 2) You are committed to a set large payment that remains the same even if you lose a job or your circumstances change for the worse.

As a quasi government agency they can ask for verifications that you will never know about and at closing the borrower signs docs authorizing disclosures, lots of ways to check;Mailing address at post office, utility company, motor vehicle registration, insurance docs, bank account even your employer can report, credit cards, other debtors and more...And it's not just fannie and freddie, but any financial regulator can pull a compliance audit, state banking authorities, FDIC, CFPB, Comptroller of Currency....etc.What constitutes a residence?

I have the keys, a professional looking business card with a company name that matches the ad they are responding to, and applications and leases with the same company logo.Sure, none of that is "proof", but it all lends credibility.

The market is very soft and is largely held up by government intervention and hedge fund black boxes.