Here in Florida I have been told by an investigator from the DBPR Division of Real Estate that in order for there to be an equitalble interest in an Option to Purchase Contract said contract must be filed with the Clerk of the Court and there must be monetary consideration paid to the seller.Failure to follow this will result in a charge of practicing Real Estate without a license.He even said than many attorneys do not know this.

If the owner refuses to use a title company and do a proper, well-documented transaction, run away.In a nutshell:NOI = Rent * 50%Max payment = NOI - desired cash flowMax loan amount = PV (rate, term, max payment)Max price = max loan amount - repairs - purchase costsI've looked at KC a little bit, and I'm quite confident you can find deals that work with this forumla.There are two other considerations before you buy - demand and value.You want to be sure there is demand for the property you're buying.

I will tell you from the deepest depths of my soul that I can't stand property management.You ought to here the horror stories I hear from my sellers when I list their properties.Managing is a very tough business.I think where many investors go wrong is they try to be CHEAP in paying a manager.When they buy that 1st house they believe that collecting rent will be easy.When they find out it is much more intensive than thought they now look for a manager.The problem is they didn't take this into consideration when buying and now will have a cash flow problem.So they then try to find the cheapest person possible.YOU GET WHAT YOU PAY FOR.What buyers should do is say I am going to manage myself but just in case that doesn't work out I have already priced a PM company into my offer to buy this property.This is what happens to people who don't plan enough for a fix and flip and they get stuck with a rental and a nightmare to deal with.You have to plan upfront as much as possible so that you mitigate the risk as much as possible of problems happening.For houses many brokers/agents look at it as good side income but it is not a huge paycheck for them.As soon as sales pick up they could care less.Why does everyone let themselves get locked into a 1 year contract with no provisions??

Another consideration is the amount of the original note and the amount of time your parents paid down the loan.Over the term of a typical 30 year mortgage, you will pay 1.5 times the purchase price of the property.

Thank you in advance for your consideration.

I have seen them as low as 20 per sq ft (but they need considerable work).I know.........it's all relative.

There are markets across the US that will return considerably more than 4.5%.

My states defination for a mortgage broker is the following:21(a): "Mortgage broker" means an entity that obtains, attempts to obtain, or assists in obtaining a mortgage loan for a borrower from a mortgage lender in return for consideration or in anticipation of consideration.Since note finding does not relate to obtaining a mortgage loan for a borrower from a mortgage lender...then I do not need to be a mortgage broker in my state.But your entire blog discussion did not examine another very interesting law that relates to referral fees related to real estate related transactions.

Replacement in a slump bolck constructed house can be considerably higher than in a stick built house.Foundations can be a large issue and this is especially true in Tucson because of the lowered water tables.

Collect an assignment fee (or keep the option consideration your buyer paid you as your assignment fee), get a release of liability from your own agreement with the seller, and move on to the next deal.