Totally different story in my market.Here is the way I look at it... with FHA guaranteeing almost 70% of all mortgages it doesn't make sense to artificially limit the number of potential buyers.While FHA requirements can be a pain... as mentioned a lot depends on the lender, I have found that those investors who adjust their business approach to deal with FHA buyers are making more then reasonable profits... quickly.Best of luck!

Instant Guaranteed Approval.

I learned today that on rare occasions, brokers will guarantee the borrowers loan for the bank in an effort to push the loan through.

This would ensure the investor who bought the property a) has guaranteed income, plus overage, option $ and a we would even be willing to put down a security deposit.

Like you say, no insurance or guarantees, but the ones I've seen usually give your the current state of the property.

But if the entity is a limited liability entity, then a negative net worth for the business will not flow through to your personal balance sheet except under specific circumstances such as personal guarantees, stock that is not fully paid-up, etc.

You will have a better chance if you have some proof of funding already in place when you place your offer.But there are no guarantees unless you are willing to outbid all other buyers.

My friend says that the rent is guaranteed for the first Three years from purchase.

If your option fee is 10%, you give 50% of the rent as a credit, and the tenant has to do all repairs, then you're almost guaranteed to have created an equitable interest.

Distressed borrowers typically have distressed housing conditions - so you'll be expecting repairs without a guaranteed entry to inspect prior to purchase.Buying REO properties will allow for clear title, and inspections to determine needed repairs; title is almost always insured.Due diligence varies with each of those, as you can tell from that somewhat brief explanation.And Mark speaks from experience regarding the IRS liens :oops: