We were goign to try to get a lawyer to draw up some papers where the payments they made to me would include principle, interest, insurance, and real estate taxes.

Value is hard to pin down and 3 of four houses need new roofs, 2 of four need some foundation work, all four need major cosemtic work.

I was rethinking the idea without the IRA but we'd still be talking possible mortgage fraud.Back to the drawing board.

It seems that we are getting closer and closer to either eliminating or drastically reducing government intervention in the market for financing for housing:Housing regulator wants Congress to shrink Fannie Mae, Freddie MacA gradual draw down seems like a logical solution to me.

As far as finding property with carpet and paint only it will be tough as home buyers compete for those properties too.The home buyers are happy to live in it and get small equity say 10k where you can't do that on your flip plus it's easy for them to get a loan to purchase a property with minimal work.With cash you need to look at properties needing a bunch of work.Try to find the most run down property in a great area.Buy it cheap for cash and fix it up to sell.If you don't want to take yourself away from your main business you already have you might look at wholesaling properties to start.Less risk just getting started and you can learn the ropes.You can use hard money for flips to preserve cash but the hard money takes high interest and points and only gives money for repairs in draw schedules so it drags out your rehab and resale which costs more money with your loan.You could focus instead of whole tailing.Fix the property us some and sell to an investor for cash with a small markup.Since they have cash there will be no loan red tape with a retail buyer.Less margins but more volume.Hope it helps.

They follow the same model of a free seminar to draw people in.  

I'm not sure if there are any legalities / registering involved either .... i.e. can I just say, "hey, give me 100k and I'll give ya 7% a year" and draw up a quick word doc or do I have to register as an investment advisor or similar undertaking ...

I have confidence that the city will continue to be inept and the permitting will get more and more backlogged while they bury their heads in the sand and/or try to pin the risk on the architects with their "shortcut process."

You have to ask permission often time to get draws on the loans during extensive rehabs and basically have to ask your "daddy" if you are okay and if you can continue.Using your own cash is less paperwork, which means less time, too.As far as being smart about risk, I think you are being too clever for yourself.

I need to pin-point venture captial and or angle investors or just a big developer?