I did manage to conclude my REI business with minimal damage - $50,000 seed debt obligation from private lender.

Check with a local mentor on how to minimize risk when it comes to getting a non-payer out.

The basic formula is pretty simple:-Maximize your income by upgrading your education or job skills-Minimize your outgo by living beneath your means-Religiously save the difference, and-Follow proven investment principlesMost millionaires are not big spenders.

You can suggest to the current owner to try and do at least something minimal to stop the leak.Tell her about the mold issues that could arise and affect his/her health if left unattended.Write into your short sale contract a special clause that requires a secondary inspection to verify that conditions of the property has not deteriorated since the original contract may serve as a motivation for the owner to do something to have you not back out, of course, the flip side is you may scare them off with such contingency.

The balloon minimizes the damage to the notes value, since it gives the opportunity to, at a minimum, reset the rate on the note even if the borrower can't refinance.Among other things, it's also a good idea to pull the borrower's credit and to use a loan servicing company to create appropriate file documentation and payment history, again to maximize the value of the note in a potential resell situation.Many investors have built thriving businesses selling property w/ seller financing, seasoning the note for a year to establish payment history, and then selling the note at a large gain to their original cost position in the property.

Start small, minimize your exposure, and look for early successes to build up your confidence.

I am hoping to minimize my maintenance issues for the first couple of years on this proerty, since i have a full time day job.Didn't want to have to deal with a lot of maintenance issues.

Let the C-corp build equity and reputation.The C-corp is owned off-shore and is capitalized, (not loans, so funds flow in one direction only and minimizes double taxation).

Spend your time learning how to retain tenants and how to minimize turnover time and that will put enough money in your pocket to hire out the rest.

I have such low mortgage rates on my properties that I cringe in considering converting my cash into equity but I am in search of minimizing my burden vs. maximizing my income.