Basically it would work like this;  the distressed seller would agree to move into a rental  and the investor would take over payments for the agreed amount of time and finance the rehab  for the property.  

I'm looking for a distressed property or a foreclosure and I would like it to be my first purchase and hopefully invest in additional properties after that.

I use a solo 401k to invest my money in 50-60k distressed houses, which I then owner finance for a cap of 12-14% in the current market.

My mentor sends me great deals that make me money, and he teaches me his niche of distressed properties with owner financing. he makes money off me when I buy deals, so it works for both sides.

SFH, 2-4 unit - anything physically or deal-wise distressed or otherwise sold at a discount is perfect.

So you get a property under contract and then you sell(or transfer) your interest in that contract to someone else in exchange for money.The seller has to be distressed ,meaning you are solving a problem and due to the fact they are distressed you get that price reduction. :)You then create value when wholesaling the property by marketing it to rehabbers etc.When communicating to rehabbers it's essential that you talk about the property in terms of ARV(after repair cost) and rehab dollar estimate (typically $15K 20K or higher depending on location, property etc).Check out the podcasts and a book by J Scott on flipping houses (available here under LEARN) that is essential in this business.Welcome.

So say you find a good deal on a distressed property, to make the numbers easyYou get a property in bad shape from a motivated seller for $50 KThe property needs about $25 K in repairs to get it good shapeIn good shape the property would sell for $100 KSo if you can get an appraiser to agree to the $100 K After Repair Value, then with these types of lenders you can get $75 K financed (75% of ARV).

Its one of the reasons; why I focus on probate properties, and other forms of distressed properties.

First you have to find a motivated seller who will sell you their distressed properties.

Hi everyone.  Brand new member here, first post actually.  I was coming on today to get some advice from some seasoned vets who have flipped in the south side of chicago.  I was looking to get in near the calumet city...