I always favor simplicity, and for me I think both of them are kind of busy.

Theorectically any time you buy or sell a house you could be involved with a lawsuit, but to say oh don't buy houses because you could end up in court if so and so happens just is not practical advice.I have never heard of someone refusing to sell when there is an option, and not that it isn't something to process, but to conclude that sandwich options are a VERY RISKY investment because of this possibility seems kind of unfounded.There are risks involved with all investments and adequately and accurately assessing those risks versus the rewards is key to success in any endeavor.

I'm pretty sure that Ryan is correct about the usury laws, and anyway if you charge so much interest that the investor who's borrowing it can't make a profit you'll end up with a bunch of property that you don't want.I've made some HMLs and I've never charged anywhere near those numbers, although with points and fees I make sure I'm NETTING a very nice return.For those kinds of numbers you have to become a "payday" lender.

Kind of to "all cash"'s point, it would be "easy" to get this to positive cash flow, but you are not taking into account the "lost opportunity" to make money from the equity!

If you're needing to take some cash out , check the cost of that money (interest rate) versus what kind of return could you make on your next investment.

like ryan said, wholesaling or bird-dogging is the best way to start -i'm kind of dumb like that.

But I thought, if it turned out well, then I might want to invest in this kind of property.

ok well thanks for at least giving ur thoughts...I agree with you abt using the formula, but I was thinking of some other kind of creative financing that you cud use when the homeowner owns the home outright.

Some avenues are less work than others, but normally you have to put forth some kind of effort.I've finished my real estate course lessons and all I need to do now is review and test.

Having done this twice already and getting ready to do it again... the SEC has some very specific rules about these kinds of things.Most of the rules captured under a generic term called 'Blue Sky Laws" deal with how you approach different levels of investors...