I gurantee you that in this market, 98% of people that jump into the game with bad credit, essentially no money to work with, and not even enough experience to know that in order to "cash out and make money off rehabing" you have to SELL it, are going to get absolutely BURNED.

There are are a lot of issues and often an exchange should be planned well in advance.A good exchange facilitator is almost essential.

If you plan to hold it in an LLC (or another business entity), you can likely just use the operating agreement (or by-laws) of the LLC/Corp to define the relationship and the responsibilities.If you plan to hold in your own names, you probably want to have a partnership agreement that will essentially lay out everything that would otherwise be in the operating agreement.While you can probably write the document yourself, you'll want an attorney to review it to ensure that it's complete and unambiguous with respect to roles, responsibilities and financial issues.

Premiums Paid:* Sale Markup (The investment group puts in under contract and essentially wholesale's to you) Knowing that you don't know much about the area, they may try and squeeze in a few extra $$$ they wouldn't normally be able to.* They have their "crew" do everything.

Most first time homebuyers (of which most HUD buyers likely are) are going to get FHA loans for their purchase.In order for a house to qualify for an FHA loan, it needs to pass inspection and essentially be move-in ready.Even a missing stove or fridge will disqualify a house for FHA funding, so most owner occupants will have to pass on houses wi just these small types of defects.

A rent-to-own or lease/option, whatever you call it, is essentially a glorified rental.

Essentially what I read especially when sandwich L/O come into play is that you only need a narrow spread on income vs expenses (either rent paid to owner, or PITI if owned), since the maintenance is passed onto the tenant.

When I called to speak with them I spoke directly to the owner who essentially made the decision to do the deal over the phone based on my description of the deal (pending appraisal of course).

Essentially he will get no pay until his debt is taken care of.

Thanks for the quick replies.In answer to your questions, my plan is essentially to do it myself as a side project and change of pace.