At first I wanted to start out with stocks/bonds/debt/securities etc.

Operating expenses include taxes, insurance, management (even if you do it), maintenance, advertising, utilities (at least during vacancies), capital expenses (although not technically an operating expense), entity maintenance, legal fees, evictions, court costs, evictions, damage done by tenants in excess of the security deposit, I could go on and on.At any rate, you left out all of these expenses, which means your negative cash flow (even with your interest only loan) would be a monthly LOSS of about $768 per month (over time).Good Luck,Mike

I am trying to get into REO'S and I need a hard money lender or 2 to secure the financing.

The party giving away ownership is the grantor (they are granting title) The party receiving ownership is the beneficiary (they are benefiting)I know others have different views on the protection (or lack there of) a land trust may or may not provide.

Hopefully you have some security deposit.Jon

So, I'm not at all sure that all the negativity about loans is justified.I do have excellent credit; never missed a payment on anything; these are full doc loans; and I am buying these properties at about 40% of market value, so there is a huge amount of equity in the deal and the bank will therefore have a lot of security.

So when I find notes, ie. real estate secured, business notes or commercial notes, well, hopefully I will be able to come to this forum that is full with all of these investors.Mary

My biggest issue is that My income is not very high (only $2,600 a month take home) and I don't have substantial reserves for down payment or as security for 2 months mortgage payment and stuff.

You as the Landlord have a secured lease for three years.

(interest rate, term, baloon, LTV, lender participation in upside, etc.).Some details:- 1 acre lots- lots selling around $30,000- lots in neighboring subdivision sell for much more than $30,000- sales history shows brisk sales over past two years and steady appreciationGiven the current situation with real estate lending, I don't know if securing financing for such a situation is even possible, but if you have done something like this in the past, I would really appreciate your thoughts and wisdom!