Both flipping and building spec homes are a businesses that some bankers will shy away from because there is substantial speculative risk.

I ask because I am trying to wrap my head around these concepts, and my research hasn't yielded the proper framework yet.

Headed to my first courthouse auction on Tuesday to see what the process is like.

@Shawn Thom looks like you have a good head start on this one.

@John Blackman,You are correct but when you sue the owner of the LLC and the LLC, the lawyer will go after everything the owner has, and I know gurus say put a crack head Susan on the LLC to distance yourself, but that trick will not work.

Then DOUBLE that in your head and then get to work on some real numbers. 

Erik Hitzelberger,I am sure you have insurance to protect you if someone steals everything you have and did you let the insurance company know that you are giving the key ever crack head or wine o that want to look at your home for rent.

However I am new and I want to figure out the best and not get in over my head.  

Knows that the property needs a substantial amount of work (about $150K) but could be a +500K ARV.  

He asked for a few substantiating documents and I was pre-approved in a day or so.