Okay did a wrap with a seller.Added as a additional beneficiary on the policy.Policy comes up in March.Insurance company was fine putting me as an additional insured but then the owner of the company calls the seller a few months after closing and said his employee never should have told her that.She doesn't have any written communication or a recorded call from the employee saying it was okay just the phone call before the closing happened.Now the owner of the insurance company says he wants to see the seller back on title before he will renew the policy.I mentioned I could add her as additional insured and she said the lender would be required to have her as primary.She is freaking out about the insurance issue and thinks the lender will call the loan.She wants a quit claim back to her and an agreement form her attorney that I manage it but still own it and I can buy her out at a later date.I told her I would not agree to this.We have completed substantial improvements to the property and have gotten out the bad element.What I have come up with I believe will shed light on her true intentions.I am thinking of creating a Joint Venture partnership or something similar where she is given 5% non-controlling interest in the property.This would add her back on title and then the insurance should not be an issue to renew.I am checking with an attorney on this now.Want to get thoughts on this issue.

Couldn't I negotiate wit the bank too buy their performing note and wholesale it to a note buyer, then the note buyer could work out the mortgage payments to make them more affordable?

Why performance group: I get many great ideas from Bigger Pockets, AZREIA and other sources.

She then put about $60,000 in improvements in the house.

Low priced back stock might perform, but what about the high end RE?

One one property I looked at last year (a 6-unit), Fifth Third had refused to renew a performing note, and ended up selling the note in pre-foreclosure stage to an investment group, at a huge discount (probably .40 on the dollar).

You would simply say "based on an appraisal performed at the time the option is exercised".

That would discourage someone from improving the 3 and 4 unit housing stock in a community.

You will receive a monthly return regardless of the property's performance.The risk here is non-performance by the property owner, but you can have the title company or closing attorney hold a quit claim or warranty to be recorded upon default.When buying and holding, I prefer to have money partners to use a debt financing arrangement if they want nothing to do with the property.

Now that will make a significant improvement in your standard of living especially if you intend on keeping the property for a while.Now, I haven’t made a decision as to what type of REI I want to do simply because I have no experience.