In some states the damage deposits are required to be held in security accounts, but in others they are not.

Ive never flipped a house before, I have no idea what supplies and materials cost, and I dont know what's a good price for a decent contractor.

They have licenses securities representatives in many markets.

Its unfortunate how many people are online hiding behind a screen name and using that "security" to be absolute scumbags.

Some entity is lending the money and they will get a lien against the property to secure the loan.

But it's not required.I did receive a letter saying that the transaction I had described was acknowledged but that the bank was not waiving any rights provided under their security agreement.

The point the authors make is that while many people are leaving the marketplace due to the media's drumbeat of "crashing RE markets" and the increase in market supply, savvy investors should be buying as many good deals as they can instead of sitting on the sidelines waiting for the market to finish its correction.

Check with your attorney.In my experience, the first thing you need to do is secure the property.

That means you paying for the roof, the hot water system, heating or cooling, secure doors and windows, controlling pests, etc.Evictions have been overturned because of a landlord expecting the tenant to do too much when there was a lease option.John Corey

The mortgage company just cares that you have the money to repay the 2nd mortgage AND that their is equity in the house to secure the 2nd mortgage.If he is recommending that so you can document your self-employment income, that is a different story.