Right now we can't find enough below market value properties to supply our investors, so we are starting to bid on foreclosures at the courthouse here in Phoenix, AZ.

I am in Canada, so I would have to look up securities regulations here.

In addition, while you are waiting for that small percentage of people with bad credit but a big pile of cash to show up for the option premium and security deposit, you could be renting the property.

I take care of rehab, but...big BUT...what is a way to protect my interest in the property while I rehab, allow him to secure his interest while I rehab and resell, all until the property is sold and we all cash out?

my sweet innocent tenent never cleaned a thing in 9 months , she stained the carpet , it took 26 passes with a steam cleaner to get the carpet looking like new , she kicked a hole in the wall , these are just a few things , total 1,500 dollars worth of clean up and damages, she paid 400 for security deposit , do i send her a bill for the difference or do i have to eat the diff, i took pictures before she moved in and of all the damages after she moved out , :shock:

Would you do a JV, or just secure the note to the property and have your LLC as the soul owner?

Both parties are running the risk of losing the property or being forced to pay the loan off in full if and when the bank enforces the due on sale clause which is present in almost every security instrument I have seen.

This will give them the security of knowing it is sold and the opportunity to make more money on the sale of it then just selling it to an investor.

The legal details are more or less the same.1st loan secured by either a mortgage or trust deed.Seller financing providing a second loan and secured by the property.I will let the mortgage brokers spell out the financing details (rates and terms).Be very careful with commercial.

In the case of Net Bank part of the problem was the bad loans secured against real estate.