If you hit the 2% rule, it is practically a guarantee that you will have real cash flow.

Your mother may have to give a personal guarantee, but if the business is prosperous, this may not be necessary.

But, in many States, if you personally guarantee a loan, even after a house is foreclosed, you will still have to pay any losses the lender incurs if the house sells for less than the loan balance.

These would be harder to get, and expect to pay more in interest -- which is not tax deductible.Unless you are a large, well-established company, business lines of credit will probably require a personal guarantee by the owner.

I tend to agree with you Ed, I find it hard to imagine any roofing contractor would be able to guarantee 100% that every nail has been removed from every flower bed, yard, driveway and sidewalk of every job.

The Fed issued the following statement, basically giving S&P the big FU:"For risk-based capital purposes, the risk weights for Treasury securities and other securities issued or guaranteed by the U.S. government, government agencies, and government-sponsored entities will not change.

(e.g. new roof).Can Loan directly to our LLC with personal guarantees (this personal guarantee does not show up on personal credit report until you default).

He has exactly the same Mk 1 Mod 0 standard issue eyeballs I do, and I can guarantee I've renovated more houses than the standard issue inspector.

This information might be found on the department web page or by talking to someone in the department that regulates this business.

In terms of drops I am not talking every 30 to 60 days.I am talking every 3 to 4 days or 1 week max.If this was a property needing a bunch of work I wouldn't overprice it when listing it.If the seller wasn't realistic I wouldn't list the property.I have over a thousand investors in my database built up over the years.It is guaranteed that when I take the listing only when priced right and market it I will not need a wholesaler.I will easily land a direct investor or buyer for purchase.The more people you have in a chain the more complex the deal gets.I like to keep it simple,control it,and close it.The point I was making before is if a property is listed at 80,000 and the investor offer is 40,000 then for the seller simply reduce 1 to 2 times every week until an offer comes in.It doesn't do harm to list it a little high to start out for the first week or two but then you have to reduce ahead of the curve to sell quick.Banks do this all the time.When I list a commercial short sale it is very rare for a bank to take the first offer.If I have it listed at 400,000 and the payoff is 1 million.I might get 5 offers in.One at 380,420,460,540,410 etc.That market value isn't the loan balance but what current sold comps are.By the asset manager reviewing price and terms of each offer and the net the bank sees that the property has had full exposure and here is the top of the value they can extract for the file.The asset manager then shows the supervisor,director etc. to get final approval.While it is true a seller has holding costs they have to weigh the price offered versus what they could get if they hold out a little longer.Banks sell thousands to tens of thousands of properties a year so they know how to extract top dollar for a property.Sometimes you get lucky and land a new asset manager or buy at the right time of the year when banks want to dump the property.