Generally speaking, it is just like any other real estate transaction in that you the buyer are purchasing the property from the seller and will become responsible for making the mortgage payment after closing.

Usually you'll find that private parties who are not registered or regulated in some manner may not charge points as points are pre-paid interest and would apply to usury restrictions and such restrictions usually apply to private transaction in RE.Origination limitations for qualified mortgages are limited under various arrangements with the SAFE Act.

In a transaction, at some point one party or the other is expected to have some slight advantage, transactions are rarely exactly equal.

The lease options do sound as though they are potentially a little more complicated and would require out of pocket investment for the transaction, this may be something to look at down the road, but perhaps not my best way to go right now.I have begun reading the beginner's guide to RE investing on this site and it has been very helpful, I plan to read and learn as much as possible before jumping in and come with an investment strategy for an area that I become an expert in before doing my first deal.Once again, thank you so much to everyone for your great advice!

Once the transaction is complete and the tenant has moved in, I would then package the property as a net-leased investment sale and sell to a long-term investor.3.

Subtract the principal balance of the loan, along with all costs of the sale transaction for your NET gain.

I would have a plan of action before contacting the agent meaning advising the agent you are interested in the property, how the agent will benefit from you wholesaling the property, and finally how all parties can benefit from the transaction because the seller will have to be ok with this too.

Or you can always close the transaction and deed the house to the investor after closing.

Questions like this are based on mistaken perception of the typical transaction.

Money earned is not an indicator of quality education as money has been made by many doing illegal and unethical transactions as well as strategies that may not be applicable today.