If you get defaulted on there's a good chance that the first is in default as well, which means to get your money you're going to have to get the first current, foreclose on your note and then sell the property for enough to cover both, plus a profit.Bad credit history, bad payment history means the risk is higher, which makes the return higher on a RISK ADJUSTED BASIS.

The upper end (over 300K) and new construction is getting pretty soft.I've been researching Lubbock, and it's very similar to Amarillo.

I may be wrong, but I think you're trying to be constructive here.

I will be posting a subject in the "starting out" section asking for constructive criticism and thoughts from others who have raised capital, and found partners (or for that matter invested or became involved as partners) to further their RE portfolios.

The location is very good and the unit is easy to rent although the building construction is average (built in 1975).

There father owns Montelango construction, so they are able to get cheap labor and materials for there homes.

Nope.Remember, it wasn't the Realtor who initiated thisit was my friend (who reminds me alot of you Ryan).He's in construction, and has a sixth sense.

If you don't have construction experience then I would recommend networking with a contractor to bid some of your more promising potential deals to give you accurate estimates.

due to their rush into "rehabbing and selling" with little regard for an investment plan or their rush into landlording or even wholesaling or pre construction or whatever - i think many investors are on the balls of their *** right now, or will be soon.I DO NOT WISH THIS for anyone!

It Appraised at $700k.We’re thinking of refinancing the construction loan to an 80/20 int only.80 @ 7.2% 20 @ 10.8% We’d get $250k cash-out to pay off debts and buy land for another new house.I'm living in the house now; We’d sell the house after 6 months (1 year after acquisition of land = .05 Capital Gains tax).