I haven't read the book and I don't use the technique, but I am guessing that the "early" rent is really market value and the late rent is higher than market value.

Is any bank really going to consider a letter that says "John Doe is putting up $xxx to fund the purchase of this property" without actual proof John Doe has any money, or am I over complicating this.

Then there are those who assume the world is a bit more complicated than that, and spend their time digging in further to *really* try to understand the processes.Those people ultimately come to an understanding that is much greater than "what goes up must come down."

A big thanks to Bill Schultz and everyone that's participating in this forum it's a major help to know what techniques other investors are employing presently.

Below $1M or so things are different than when you get bigger loans too.Prepays, lock-outs, carve-outs, reserves, fully-indexed terms, underlying indices, etc. all get more important and complicated with commercial debt.

This pretty complicated stuff and I never found anyone who had actually done it on an individual basis.It all looks perfectly straightforward on paper.

This technique has a lot of real risk associated with it though.

Well the real answer is rather complicated.

I do understand that the bank has a right to ask for full payment when property they hold the note on is sold and I am guessing that the best way to make this deal go through is to make sure that the bank is unaware that any transaction has taken place.With respect to an exit strategy, this would be a primary residence, even though if the technique works I might consider adding in a few investment properties as well.I'll read up on the Subject To deal mechanism and see if I can't come back with a few more educated questions.Again, thank you both,Ken

You should have as few complicated things in your apartment as possible.