I think one of the things that you will find most interesting about commercial lending is the amount of flexibility and creativity that can occur.

While not all of this convergence will be from the bottom up (indeed, we believe non-distressed prices have more to fall), a good amount of capital appreciation should still occur simply due to the magnitude of the current discount.

Holes in walls can occur in a hurry...

When this occured the bottom was found - this is the price a piece of real estate would trade for in a cash market - with no bid up from buyers needing mortgage money.Further, no new spec homes were built in these areas in the last 4 years.

Since it was in mid winter, we felt it was an emergency and paid the bill. 2) When the plumbing issue occured, I arranged for a plumber to go to the house the next day and informed the tenant.

The latter is not likely to occur over the next 2-3 years, but depends on the actual price.There is no limit to the amount of a payment that can be applied to what, that is all decided by the agreement that you come up with with the seller.

This is what occurred...After all that research work spent on owner financing and structuring the perfect note, a buyer came along with their own financing and I could only manage to get them up to 263k purchase price.

I'll post updates as they occur.

I know it's tempting to start work, but without written agreements it's a bad idea.I have had two sellers die after contracting and prior to closing, one from a heart attack the other in a car accident.

Chad Mellentine - This is a common occurance.