Before you warn me of the pitfalls of investing with friends, please know that we have thought carefully about this and understand what we are possibly walking into.That being said, here is the situation: there are four parties involved, and together, have about $300,000 for a down payment.

If it's not enough then find you a new third party lender who does seconds, to put in the rest.

By doing as much research as I can and surrounding myself with excellent resources (this part is complete!)

I am well versed in land trust type transactions and not sure what you mean by how lenders look at the sellers in this deal.First off if you look at the Garn St Germain Act of 1982 under section 8a you will find a lender can not call a loan due by way of a seller vesting his title into an inter-vivos trust as long as the settlor remains a beneficiary and there is not tranfer of occupany or leasehold interest so that did not change and been the same.I personally love using trusts due to the protection it provides all parties as beneficiaries in the trust.

As a rehabber the hardest part is finding the deal.

All parties to the sale, Steve Seller, Joe Investor, and Big Bank, will need to execute the proper paperwork and disclosures, depending on local and state law.Hope this helps Gerald - all the best!

I would never rely on a third party to decide on whether or not something is a good investment.

Both the previous posters are correct in the most part. I

He was referring it to, if you got a group of wild teenager who like to throw parties or something along those lines, you would have enough in backup to keep you from putting your own expenses at work on the property and ending up in the negative.

A friend of mine that makes $300,000 a year, works at home (no overhead), has awesome cars, trucks, bikes, 4,500sqft home with 3 bay garage, always vacationing, partying and he was always depressed.