You're doing them a favor by providing an extremely attractive investment compared to what they're currently earning, so posture it that way.

Well, I am in favor, John, of a 3rd party payee, as in a seller financing 3rd party payee.See http://www.biggerpockets.com/forums/70/topics/59733-note-servicing-companiesI hate the thought of the seller not paying the PITI and the buyer getting hurt.Another difference I set the rent to market rent, and if the PITI is greater, charge an additional non refundable monthly option payment.

Of course the benefit would need to be in the mentors favor, but the newbi with true determination would be the one who is truly being blessed.

The place is move in ready....its looking pretty tasty from an investment standpoint.If anything the train will work in my favor when negotiating.Thank you everyone or the input!

If you're not properly trained, do yourself a favor and don't carry.

I would be taking the proceeds and investing them into a couple buy and holds out of state in a much more favorable cash flow market.

Second place probably goes to Saint Robert, MO (we have three markets in MO), and third place is probably Atlanta.Personally, I favor Indy for the growth, and the balance between returns and appreciation potential of the market.

They are incentivized to work quickly and on your behalf which are two things that will work in your favor as you actually progress from viewing to offering to placing a contract and closing.

If there are any payments required, make sure you pay on time and the checks are deposited on times, the date deposited is the date payment was made.Now, a year later you are then ready to rfi without a cash out requirement with valid liens to be paid off.Your parents need to be as protected as any other lender, they need to be added as lien holders to your insurance policy, without a recorded debt they could be an additional insured but as a lien holder they come before you or your estate is something were to happen.Next, having the debt is evidence for interest income for thier taxes and yours as to your tax deduction, you'll have one 1099/98 with this arrangement.Don't know if you are an only child, but if anything were to happen to your parents the recorded note and deed of trust will show the arm's length transaction for any estate issue, the same for you as well.Since you're doing construction, if you had a disagreement with any labor or material supplier your parent's interest will be ahead of any other liens that could be filed against your property by filing that deed of trust in thier favor.

Mike Baker - A $200 gift card seems kind of cheap for someone bringing you a buyer that actually closes on a deal.I've given realtors bigger gifts than that just for doing me a favor or two (saving me thousands in the long run).Now Im in the same boat as J Scott.