They will pay the person who submitted the lead a percentage of the whatever is generated in the transaction.From my initial research, it actually seemed like a pretty legit operation.

i don't want to be discouraged but i had no idea finding the right house would be this hard :( would our best bet be hiring an agent?

At the moment I don't know a whole lot about construction; however, I bet if you put together a good team of knowledgeable people it could work.

jimbo; I hate to burst your bubble but when a lender raises your interest rate 3/8 or 1/2 it raises your operating costs (at a 6% base rate) from 4% to 5% PER MONTH.

So many of everyones posts have been a great help already, but you bet, I'm sure I've got lots to ask help on.

Here's one in particular that I've run some numbers on:10 units, $585 per month per unit in rentsale price $795kAccording to the ad:Scheduled Gross Income:$71,000 (my caculator must be broken 585 x 10 x 12 = 70,200)Net Operating Income:$54,060NOI seems a little inflated if you ask me (but you probably didn't :lol: )If you put 10% down ($79.5k) your loan amount will be $715.5kAt 8% the payment will be $5250/month.

I'm sure many people have done this, but I'll bet that most of them don't fully understand why they are doing it, and many of them are losing money without realizing it.What's USUALLY in the back of their mind when they do this, but is often subconcious, is that they are COUNTING on the house to appreciate and/or rental rates to go up.

Not only are you dealing with normal rehab issues for a major project, but then you are also betting on the come.

Remember, each state establishes it's own reg and exemptions.In the end, I guesss your best bet would be to seek legal advise before pursuing PL for funding your deals.

However I bet money most of them are just looking for a cheap house and aren't investors.I dunno.