And, even if he doesn't take title, if it's a private sale (not an REO), you may still have this issue (though title transfers through REO sales are exempted by FHA).All that said, there are a few underwriters out there who will underwrite these types of deals, even for FHA purchases, but they are few and far between.

I have worked for this private investor for the last 7 years.

Also, some other considerations: Did you rehab it with higher end appliances & fixtures, custom finishes geared toward attracting better buyers, or is it more renter-friendly (average for the area & won't upset you too much if/when renters damage it)?

I've got to give him a shout out for finding Private Money.

Its across the street from a small private school that is buying houses all around it.

I've resorted to using the release method of wholesaling, but of course that works best with private sellers and doesn't work at all with REO's.

Rents are the consideration paid for the tenancy rights, not an ownership right.An option, of any duration whatsoever is granting an equitable interest to title that includes ownership rights, it is a contract allowing a buyer or optionee with a right, but not an obligation, to purchase the ownership rights (the bundle of rights) and at the moment that agreement is made.These concepts are grounded in law as well as in practice and custom.

Look for a Hard Money/private note for 10k on a 12 month term.

The airport was completely renovated and upgraded to allow for larger private jets.

I might find myself with $10k, and if I do, I want to be able to use $8K of it be a private investor because:a) I feel I can get the return in 90 - 120 day, if it's a rehab project.b) Duh!