I have some clients who negotiated master "take out" commitments with two local credit unions totaling $3.5MM.The business plan has to be solid, LTV's low ideally 70% or less and the investor/buyers must be liquid.

The following scenario is beginning to play out: I contacted a few rehabber guys from the newspaper who had ads like: we buy houses any condition cash!

I also have a partner that I can use that can provide the money down but ideally want to do this solo and not worry about a partner.

The only way you would Ever want the figures to come out that way, is if your purchase was a speculation play, to cash out a large chunck of equity down the road and you could support negative cash flow each month.

But, if not, you can play hardball with the former seller who is now calling Countrywide to complain.You could call them and ask them what their chances of buying would be with a foreclosure on their record?

Looking at the numbers the first one would be ideal since there is more equity in there but if it were me I would find better deals than those though.

I have many other investors who would follow my lead.To play devil's advocate here, I am guessing that the properties truely do not cash flow since you are not willing to share how.

What you need to do is pick a area that you can find your first property to kind of play with.Are you looking to buy and hold for the residual income, or are you trying to FLIP.Whatever it is you are trying to do.

The answer: You need to pay to play.

Platinum might be more reasonable play as I think it's a bit oversold, although with auto-demand dropping demand for platinum will continue to decline.