Posted by Mark-NC on March 13, 2000 at 13:59:42:
Yes this is the concept and you are right on. The only thing you want to consider is the fact that this works best doing it retail.
If you are hunting properties that need work and are trying to flip to investors that rehab, you will have a problem with the apprasials. Most Note buyers do not like to buy Notes on properties that need a lot of work. If they do they will hold the After repair value amount listed on the apprasial when it is funded. And most of them will hold 1 and a half times the amount.
If you have any other questions contact me, I can walk you through it.