Unless the seller's willing to bring money to the table, the option price would have to be at least enough to pay off the loans and cover closing costs.

I rent a room out at my house to a friend right now, and another friend of mine rents out 3 rooms in his house to random tenants and still lives there with a covered mortgage payment.

Every rehab we do, one of my first jobs before the wife starts painting is to hit all the walls with drywall mud and cover over the scratches and holes.

He said he would then sign a two year lease on the unit to use as the model and cover my mortgage.

My plan was to buy, fix and sell, but I was wondering if it were possible to get money at closing to cover the mortage until I can get it sold in the spring of 2009.

Does anyone know if I can buy insurance to cover my losses if a buyer fails to close the purchase of a home?

Assuming you use hard money to buy, hold for six months, and have cash to cover closing costs and holding costs (estimate about 12-15% of the loan amount), that should give you a profit, pre-tax, of 10-15% of the ARV. 15% would be if everything is perfect.

In my opinion, the operating agreement needs to outline the investment specifics best as possible and cover as many 'bases' as possible.The agreement should hit these points:• the members' percentage interests in the LLC• the members' rights and responsibilities• the members' voting powers• how profits and losses will be allocated• how the LLC will be managed• rules for holding meetings and taking votes, and• buyout, or buy-sell, provisions, which determine what happens when a member wants to sell his or her interest, dies, or becomes disabled.You never know, keeping it simply may help attract more investors than you think.

and insurance are covered.

***they will wipe those people out to cover the losses, JT** Why are we having all of these problems?