What made you interested in investing in this type of deal?

No, the redeemer is not obligated to honor any agreements made by the investor.

Ohhhh I get it now, I was thinking in terms of the current NOI which is 132,000 and with the new 6.6 cap rate she was talking about this made me think the property was going to only be worth 2milWhat your saying is to forget about the old 132,000 annual NOI and now with the increase in rent this would bring my new NOI to 165,000 and with the 2.5mil PP which wouldn't change that would bring it to a 6.6 cap... so the property isn't worth less when I buy it I just get more cash flow since the opportunity to increase the rents is there.Still you can correct me if I am wrong but I think I got it now

What made you interested in investing in this type of deal?

This is, obviously, the worst outcome that could happen for all parties involved.There is a very famous saying that has become a key guiding principle in real estate fundamentals: Money is made when you buy.

I recently bought a property that was in a 'flood zone' and required Flood Insurance because of a loan.It made me think twice for a day or so, but after research (driving around/looking at aerial maps/talking to neighbors, I came to realize that there was almost zero 'real' risk.As you so astutely pointed out....this creates opportunity for investors that can do the research and can stomach a little perceived risk....

The balloon term, is when things get renegotiated or per terms of loan, a change in P/I is made.5 years is not the Payback period.  

Average customer use period (must be 7 days or less)3.

It's been a journey, but these tips have made it smoother.

Purchase price: $210,000 Cash invested: $53,0003 bdr 1 bath sfh in a B+/A- area in Rochester.What made you interested in investing in this type of deal?