With a 30 year you can always add extra in your flush times to reduce the time of repayment at your option.

You then sell those and only get hit with a capital gain tax instead of earned income bracket and you put 400k in the bank.

But in this case, I feel obliged to do so in order to warn others before they put down $10,000 of their hard-earned money.I have been a "Preferred Investor Group"(PIG) member in San Antonio for a little bit over a year or so and have purchased 2 houses thru Lifestyles.I choose to post with a psedo identity as it is not pragmatic to criticize a organization after paying a hefty sum in advance (which effectively precludes you from using services from other organizations).I disagree with some of you who may claim that some of the below points are trivial.

If you don't have other options, and you're confident that you can still earn a profit despite the HML fees/costs, then there's absolutely nothing wrong with HML.A lot of successful investors got their start using hard money, and I know some very successful investors who are STILL using hard money today (though at rates a bit better than typical hard money), because it supports their business and growth model and is their best financing option given their particular situation.Personally, if I were to go through all my cash and private money, I'd happily use hard money if I could still make money a deal.

@Elizabeth Read Why couldn't the appraiser just ignore the extra 600 square feet that was unpermitted?

With that much extra square footage, I'm surprised it's not a 4 br.

It seems to me there is one extra person in the this equation....I would think if I'm paying for a lead that leads me to a deal I close, that lead should be with the actual seller and not another wholesaler if I'm doing all my own negotiations???

Essentially a listing agent with list one of these short sales on the MLS to get the process started with the bank, I contact them and ask if their investor is willing to wholesale the deal, the listing agent gets an extra $1500 referral fee from me, and then the other investor gets a top wholesale fee without having to the rehab and deal with all of the issues associated.I think it would be a win-win-win for all parties if the investor is interested.

In reality, I would prefer to pay private money rates on their investment so any of the excess profits after paying out their interest earned are held by the company. how attractive that is for an investor...I don't know.

But - by this time, I think you have enough credibility to start attracting "Private Money" or people who want to earn a nice return on their investment by having you flip or buy-n-hold properties.