Then, I would never accept anything other than CASH for the entire security deposit and first month's rent.

Your loanwould be secured by this real estate.

After a stunning collapse on Friday (close to a 50% fall) due to exposure in shaky securities linked to subprime mortgages, it was reported today that Bear Stearns, one of the Big 5 Investment Banks, will be acquired by a dismal $2.00/share by JPMorgan Chase.The deal prices the bank at an almost unimaginable $236 million dollars.

After all the nonsense private lenders dealt the past 5-7 years with second position and being cut out of their money on the shortsale....this security makes them much more comfortable.

How about management, advertising, entity maintenance, insurance, evictions, setouts, legal fees, damage done by tenants (in excess of the security deposit), lawsuits, utilities (at least during vacancies), capital expenses (not technically an operating expense), etc, etc, etc?

Granted rental in my mind = stress to get people to sign the rental agreements....

That woman is on social security, on section 8, and uses food stamps.

A 5% return PER MONTH is pretty decent and if the only thing you are worried about is PV (i.e. your investment is secured somehow) I wouldn't move it at all...

(See my recent post about this).The Background on the Active Real Estate Exception:Rental real estate, in many cases, is held to provide financial security to individuals with moderate incomes.

In my opinion, REAs should stay out of short sales except to list the properties and secure end buyers.