You obviously need to know the property's value, estimate your costs to secure and rehab, project your marketing time or exit strategy.

In the RE context the note is normally secured by collateral that is RE.Buying and selling notes if both a niche business and a big business.

That's a return of less than 6%/year.If you had a mutual fund that was throwing off 6%/year you wouldn't be asking about selling, you'd have sold already.So your house is appreciating at less than 6% and your money is probably costing you 6%.

This would be great.Ok, now because I am really new and am still trying to figure out all this stuff out I am going to throw some numbers up that may not be the way everything works, so please correct me if I am way off base.Example 1: I get the house for 70k and say I can get the loan for the total amount I would have payments at 585 a month for 20 years at 8%Example 2: I by at retail for 100k I get a 20k loan at 8% and I can get the seller to carry the second mortgage of 80k at 4% for 30 years.

There have been some comments I have read on forums about lenders stating that they will reconvey the security instrument only - and consider the note still collectible for the unpaid balance.

Do you really want to throw money out monthly for the next many years while you hope for appreciation?

That may have been a mistake; they perhaps should have done the standard screw-the-landlord procedure and kept the last month against the security deposit, but they were naive and assumed it would be returned...

Accordingly, property management activities that require a real estate license include: showing a unit for sale or lease, negotiating lease or real estate contract terms, maintaining security deposits, rent payments or earnest money deposits.Still searching for Missouri information.

The problem is tha every "builder's" contract I've ever seen was so one sided with out clauses for the seller that it may be tough.Lesson, if a deal cannot be secured for $1,000 or less, walk/run away.all cash

I'm with Mike---if you are going to put up a sizeable earnest deposit, make sure that your ducks are in a row first (i.e. financing)---if the REO bank does except your low ball offer, it will most likely be without the contigency to secure financing (in other words, can't finance it, thanks for the 10K).