i hold a few notes...i've only sold one so far, but am currently looking to sell another..let me tell you about my experience...my buyer was an investor with a few properties, 650 credit score and put 10% down on a fully occupied 4plex...after a few months of ontime payments, i could only sell the note for 80% of unpaid principal balance...i'm told by a few note investors, that was actually a pretty sweet deal for me, although i don't have much experience to back that up with...my investor didn't want mortgages on his credit report, but could have gone to his small bank and gotten another loan, so he was a rare situation..most people you owner finance to won't have 10% down, and good credit..so you're prob looking at less than what i received, even though my buyer was non owner occupied...i don' tknow if your spread is really large enough to do well at this....i bought my 4plex for 54k, and put 20k into it...then sold it for 139k owner financed..after the 10% down, i think the note was for around 125k..the note was sold for just around 100k if i remember correclty..maybe a little less (i really can't remember right now)..anyways, i had enough spread that after collecting the 13,900 downpayment and selling the note, i did ok...your numbers look a little tight...there were closign costs to sell the property on terms, and then there were BIG closing cost numbers to sell the note...i bought that property with a mortgage, so i had to sell on a contract for deed, so that affected my closign costs bc i had to convert the contract for deed to a note and deed of trust..if you're paying cash, then you can straight owner finance and probably lower your closing costs on the sell side of the note...depending on how good your buyer is, and how timely the payments are though, most offers i'm getting on my notes are between 60-80%...hope that helps...i've heard the best thing to do is find the old people who want a steady income stream secured by the real estate, but once they find out, i'm selling and getting out of the deal, i've had no such luck...ifyou do that, you're sure to get a higher offer than from a broker or institutional note buyer...sorry for the long post

So with a $300k investment at your 20% COC return guideline, you would want to make sure you had enough spread to net you a profit of $60k.

That said, be aware that you can not "assign" a contract so you must work around such restructions in order to wholesale.You are right, REO's are plentiful there as they are here in CA, finding the right deal with the right amount of spread is the trick.Jon stated that finding deals on the MLS is difficult at best and he would be right more often then not so you must either, find the deals before they hit the market or market to motivated homesellers, perhaps work short sales or absentee owners.There are tons of threads about wholeslaing right here on BP, I suggest you read many of them as it will be a great starting point for you and it is FREE!.

By "best" I mean, the most spread that was in the deal at time of purchase.

I would probably just wrap the note and make the spread.

I am still of the opinion to treat the cancer early and correctly before it spreads.

Bottom line you need to know your buyers and then pay less than they will to create your spread.

There is not enough spread for a double, HML, etc.

If you are using a contractor you want to make sure he/she is comfortable running multiple projects and is not spreading their resources too thin and slowing down all the jobs.

It was a generalized statement which in a round about way, you agreed with.As for my spread peramiters, true, I may require more than another or less than another.