But, if you get taken advantage of (e.g. funding contingency until close of escrow, etc.) because you don't know the ropes, you could lose much more than a 5-6% commission.It also depends on each market and how much work is needed to sell the house.

My most recent acquisition won't yield 1% of the purchase price (it is an REO) due to extreme competition for properties.

To me, if I'm taking advantage of the special financing terms, and I find a Fannie deal worth the asking price, I would currently offer full ask; otherwise, I would keep moving...Just my two cents...

That's an advantage of a broker, knowing who will smile on which borrower and the best place to fund/buy the loan.You schedule certainly shows the difference it can make if a borrower has compensating factors, assets and reserves that can increase their borrowing power. :)

To me this is a huge advantage to be able to just take care of things on our own time frame.

As things progress and I'm able to take advantage of these cash purchase deals I'll look to create some cash flow.

There's too much competition driving the prices up too high to make sense.

A lot of them apparently take advantage of new investors, so you really need to do extra due diligence when working with them.

Some advantages might be the current state of the dollar and qualifying for traditional financing if you're a Canadian.If you wanted to proceed you would want to speak with an accountant about reducing the impact of double taxation.I certainly think there are opportunities to be found, particularly if you have some kind of insider knowledge or connections that will give you an advantage in the market.

Right around the time I started REI, my contracting company (it's an employee owned company, I am one of the founders), hit a cash crunch, so I quickly learned the advantage of cash flow vs. equity.