Then he shocked me by saying "I'm happy to pay you two months security, and if it makes you feel better, three months."

Usually you get the exact cost once you get a title company to provide a preliminary HUD.

I'm still in a preliminary stage, but of course I am wondering why the seller needs to sell after 6 months. 10 year call on a 30 year amortization at 4.845%.

As I said, Jack, I only commented because our PPs were the same and it was a coincidence that I happen to be closing tomorrow.Also I was shocked at how much less the closing costs are with cash.

What rules of thumb do you use for your preliminary "deal or no deal" analysis of a property?

Let's just say wallet shock doesnt cover it.

Why do all flippers feel their homes are worth 20% more than the current high end retail market value, and get so shocked when the appraisals do come in low?  

This show is packed with insight from AJ, including: How a loss on his first deal directly led to millions of dollars in later profitHow to find underperforming real estate dealsHow he made $13,000,000 in equity from an old Kmart buildingAnd the medical emergency that put his real estate to the ultimate survival test while AJ fought for his life (this story will shock, amaze, and inspire you!)

They then take those notes and package them with others from similar purchases and sell them along with their analysis to private investment funds.This leaves 45 notes from a package of 1,000 that three professional investment funds, doing intensive analysis by highly trained MBAs, have determined cannot yield even a minimal investment return.These are then offered to the individual investor, who according to those in the industry “with something to sell” (the leftover NPNs and/or “training”) can profit enormously by (1) making them re-performing notes or (2) foreclosing and selling the property for large profits.The pitch from those “with something to sell” is twofold: (1) “There is plenty of meat left on the bone” (actual quote), and (2) if you send the borrower a complete package of all docs, weighing, say, five pounds you will “shock and awe” him into paying on the note.I highly doubt either of these claims have even a micron of validity.The parties with a financial interest in you buying into this will cite isolated instances of great success, never mentioning the all-more-frequent instances of total failure.So at the end of the day the training promoters have collected up to $30,000 per person for their NPN “mentoring”/”coaching” program, the retail asset disposer has made 50% to 100% profit on their inventory, private middlemen have turned a $2,500 investment in a note into $16,000, and my sister-in-law who purchased 5 NPNs over three years ago and has spent large amounts on attorneys, taxes, and brokers has yet to see a penny in return.To paraphrase, if you don’t know who the sucker is in any ultra-high profit promise situation, it’s you.

I can only imagine the sticker shock for people looking from SoCal.As more and more young families catch wind of the far more affordable pastures out here in Phoenix, they'll just keep on coming.