Your right, every thing is cash flow as long as you work out the number.

Then, you'll have to work out a deal with the new owner.

For my third house I started to show some patience and decided to walk if things didn't work out.

The trouble is, they are VERY management intensive, and the banks know that.

How to go back to my seller and work out the deal.

I have been thinking of starting up a investment company of my own.My strategy would be much different than others.I would simply want to do a land fund.I would go after commercial land that banks are selling for a very,very low basis.I already see these deals.These corners when the market comes back in about 2 to 3 years I can get a 200k to 400k for and buy for about 50k now.I would locate the properties and do the due diligence and then split the profits 50/50 when sold.Usually the properties have a dumpy little house to rent out to cover the property taxes and other costs to break even.You don't have the headache or risk of a rehab but you do have a longer holding time.Investors like land because if they are busy with their lives or other business it's not as intensive as cash flow properties.Anyways I am toying around with this idea.I have some money of my own and when I run out want to have partners to keep buying up more land.I am talking corner parcels already graded and cleared with utilities ready to dump cheap by the banks.

SBA 7a loans are of the adjustable variety, but they do not have a fixed rate option.Unfortunately, SBA loans are only for O/O properties, so if you don't occupy at least 51% of the space then an SBA loan is out the window, but perhaps a conventional loan would work?Out

Typically it is tougher to start right out with commercial properties, in your case it may work out well.I would certainly spend some time digging here on BP and get to know the members.

Hi Jorge,I'm new in the Miami Market and had some questions about how you work out REOs with Code Violations.

My expenses run about 3% of my income (I work out of home) and inform the borrower that either he or I am free to pull out of the financing prior to closing should circumstances change.