The second problem is that any one that might buy the note is going to demand a discount from the balance that you currently owe the note holder.

Are you confident that the firm will structure the offering properly to be both legally compliant and marketable?

This opening bid is usually equal to the outstanding loan balance, interest accrued, and any additional fees and attorney fees associated with the Trustee Sale.

Next you either wholesale it which involves marketing, finding buyers, closing...all while trying to make a modest profit.Or you could rehab and resell it which involves properly setting your budget, knowing the market to determine exact repairs/finishes to make, lining up contractors, managing your budget, managing your contractors, managing your schedule to minimize your holding costs, finding an end buyer, with 100+ other tasks mixed in.Your comment about planning is dead on.

Moved to proper forum.I think you mean that his parents actually own the home (i.e., are the "grantee" on the deed) and have a mortgage on it.

Now the tenants are out because the power was shut off for non payment, but they owe the outstanding water bill, the balance of unpaid rent, court costs, and clean up fees.

Quarterly balancing is fine, but I seem to be choosing the wrong funds, allocations, etc.Any suggestions or ideas would be greatly appreciated.

Not some hired gun overseas who probably doesn't even know the first thing about proper blogging.

Your agreement can include an arrangement that any funds not collateralized shall be on deposit in an insured banking institution with such balances pledged to the investor.It's also a good idea to set forth a standardized LTV based on a qualified appraisal for those funds to come out of the bank and fund the next deal.

FWIW, I am a geotechncical engineer that invests part time in real-estate, so my input on the foundation proper is sound.