Eliminates the foreclosure risk.5)Have the owner sign over the property to me (SUB2) for some reasonable consideration to them at closing.

- Have at least one unique feature in every property to separate it from the competition and save on idle time.

And therein lies the issue, RE financing is unique by terms, collateral, applicable laws and servicing.

A unique circumstance and there were no zoning issues, the rental income was on the owner's tax returns and the tenant had been there a few years as well.

Define "fair cash value".In your example, you are stating that after using the 70% rule based on ARV from comps, your offer price, after taking into consideration repairs and your assignment fee, is that the home may be purchased for less than what your calculation came out to be.

I would recommend starting off with a Single Family House.You have to take in to consideration vacancy rates, costs for repairs, rental costs and other factors.

If they paid you 4% In Three Months, that is a 16% Annual Percentage Rate, without any compounding considerations.

Leon Yang selling cost are considerably lower as my wife can list the house for us and we would only pay buyer commission.

You then put a tenant/buyer in the property and collect an option consideration (sandwich lease) or you can assign your agreement with the seller to the tenant/buyer and collect an assignment fee and move on to another deal.You don't need any cash because the tenant/buyer that you put in the house pays the rent.

So, how you enter the business makes a difference in the type of due diligence the note buyer needs to do.Notes are unique and unlike other investments like a bond that is rated and is in an established market providing liquidity at a near par value or an easier valuation method.