Purchasing REO with notes and no money down - Posted by Dilbert

Posted by Dilbert on April 05, 1999 at 22:52:32:

I am interested in purchasing REO but have very little in the way of down payment or other funds. Many of these homes are located in good areas and need only cosmetic treatment, some need a little more than cosmetics. I would look to the proceeds from the note for repairs etc.

After the homes are repaired they would then be sold to pay off the note. The note would be preseasoned to provide the buyer with a higher level of confidence regarding the transaction. John, am I asking for too much to be done with the creation and sale of a note?

Are the following steps correct?

Write contract on property
Immediately seek to locate note buyer
Sell note and pay off bank for home
Sell the property with owner financing now that repairs are done by creating another note?
Keep difference as profit

Suggestions anyone, what I am missing here?