But I will go to my grave with the utmost belief that an Appraisal is NEVER the value of the property.

If the median price home is 150K and rent is 900, and another area has a median price of 100K and rent is 900, I buy the latter example. all things being equal.

With all of that being said, and all other things being equal this property could have a value of pushing $1.3 Million.

You owe it to yourself to check this out and see if the concept matches your beliefs.

If sees how much interest income he'll be earning on paper he'll be more likely to accept your offer.All else being equal, I'd always consider a three bedroom over a two.

#2 This guy say's he's going to find a great deal on property, and I better get his name and number...We did a few exercises, he went to his next REI meeting and came home with 5 new numbers that he didn't have to ask for...Investors now wanted him, as bad as he wanted them...He had been to 3 other meetings, with the same people and all 3 times he left the meetings not with lead, but with a sinking feeling in his gut that he was destined for failure...Which of course contributed to the problem even more at the next meeting...Here I'll explainThe problem is many rookies MISTAKINGLY believe that by talking a big game (which they usually fail at as well) that they will get investors to work with them...The trouble is 90% of communication happens on a subconscious level....In fact, in many cases the investors who turn you away probably don't even know why they don't want to give you a chance....they just get that "FEELING" from you, and gut feelings are basically a quick snap decision from the subconscious mind....You have probably had a similar experience when you meet someone and something doesn't feel right, or they just seem to be full of B.S....It's because "WHAT YOU SAY" is far less important than "HOW YOU SAY IT".The only way to change the "how you say it" is to change your attitude and beliefs about you and you're business.

(Dont know if thats a good thing or not) Yes has first month rent and equal security.

However, my friend who is selling it to me has offered the following option for the 555,000 mortgage payment: first year $2000 per month, second year $3000 per month, and third year and beyond, 7.75% APR which equals out to about $4000 per month.

If my taxes are 1000 a year more, $86 per month, it is equal to about 14K in property value for the same payment.

The buying and selling of 4 properties a year is actually bases on the California law that states that if you do 8 or more deals in a year you are considered "in the business" and are required to be liscensed.The buying of 4 properties then the selling of 4 properties would equal the 8 transactions a year threashold.It is also interesting that (in CA) any deal that involves an RE agent does not count toward the 8 transaction limit.