You would give them a first mortgage position in the property to secure their investment and then when you are done with the rehab you could refi the property and pay back the investor plus 10% (as an example).

Doing a lease purchase increases my liability because I am obligated to purchase the property at the end of the term but on a lease with the option to buy gives me the rights to purchase the property at the end of the term with the option to walk away.As an investor I want to avoid liability at all costs or at least reduce my amount of liability.If you do the lease option correctly you will earn money right away, a positive monthly cash flow and future income.

It’s been rented out since Oct 05.I learned a lot and feel I could have negotiated lower prices but they are renting for a positive.

You can either go short the home builders like Toll Brothers or St Joe or you can short a Real Estate Investment Trust (REIT) or ETF.Going short is highly risky and with REITs or ETFs, you may also be stuck with paying high dividends is you hold your short position for a long time.

They will not buy second position notes.ATTENTION!!

Concidering your in Ca, how are you able to purchase a rental property with positive cashflow?

If you don't have that program and have studied and applied it, then you're absolutely positively most definitely not a serious real estate investor.

In any case, I've been debating doing a condo conversion and selling it in halves, or holding it for a few more years.The positives of selling it now that I see are:-I would have more cash available for making other investments.

There is nowhere that you can purchase any investment properties that is going to turn a positive cash flow.

Now since the market here in LA, CA is through the roof and impossible to provide any positive cash flow, I decided to look elsewhere in the country.