Look for owner finance, lease option or other creative financing method.

Just to be legal (in CA), you need write to the tenant that you're cancelling the card, and give them the new method of payment in advance.

I would like to thank everyone that contributes to BiggerPockets, alot of the information is very valuable to me, who is just starting out in wholesaling.Because I am just starting out in wholesaling, I don't want to waste my time and I want to start this right by asking the professionals on this website.Finding motivated sellers will not be the issue, but finding good quality properties that buyers are actually looking for will be my priority.

Screen what you go after...Quality not Quantity.Not sure if this helps, there are rule of thumbs, tricks of the trade, experience, intuition, etc...

I'll probably go with the $100 over one-month rent method that several of you describe; that sounds like it will also help with the "apply deposit to last month's rent" problem that I've read about elsewhere.I'll look at the various sites that you all mentioned, and see what numbers look like.

They are rated "C" overall (recent ratings are "B" for quality but a "C" or "D" for price -- which sounds about right, given my own experience with them); definitely they're not a firm I would have hired had I looked myself, and I'll never use them again.

Why wouldn’t you want to compensate someone who brings you a quality tenant?

There are lots of other ways but we've had a lot of success with this method.

I'm not ever going to say I do things better than you, your transactions I'm sure are much cleaner and you are leaving your end buyer with a very good quality finished product.

There are investors that do this kind of thing with HUD homes as well.They sign paperwork at closing that they are occupying the property.Another component of this is fraud to a lender on a loan if you say you will be living there.The reason is lenders give certain rates to owner occupants because statistically you will fight much harder to keep a place you live in.If it's just a bad investment it is easier to walk away hence a higher rate and more down.This property from what you said is 2,400 X 12 = 28,800By half is 144,000 at a 10 cap based on 50% costs.The carpet and paint the bank put lipstick on it it appeal to a home buyer living in one unit and driving the price up.On a quad typically you could expect about 8,000 for the siding,4,000 for the roof,6,000 for 4 outside A/C units,if interior bathrooms and kitchens are outdated about 4,500 by 4 units is 18,000,then water heater and heater about another 6,000 total.So conservatively I have about 42,000 in immediate CAPEX.Every areas cost is different so I am just throwing mine out there.Now the other you say 20 quads total is what you need to worry about.If there are a bunch of short sales and foreclosures from vintage 2004,2005 loans then the new purchaser with a cash offer or a small debt service will rent below market to fill quickly and turn more or the same monthly cash as you.So you starting out at 600 rent monthly might go to 550 or 525 in your development.I have seen this happen.I have also seen even if your building is well kept quality tenants do not want to live next to the other buildings where landlords put in suspect tenants to fill up.Also some landlords with high debt service will drop rent instead of repair to keep tenants so they won't spend tens of thousands out of pocket to rehab.