I am very interested in getting into the real estate market. I had planned to deal with sub prime buyers. However the recent news about the sub prime market has changed my mind. I have an idea, and I am curious what some real estate people think about it! I have the credit score to be able to invest in real estate properties. I am thinking that I can finance residential properties, and then turn around a finance them myself to a buyer via a contract for deed, or something similar. I am figuring I can clear 0-0/month per property.

Here is what I think are the benifits…

1.) I don't have to maintain the property like I would if I rented it.
2.) I get a down payment so the buyers are more likely to stay in the house, and should have a lot higher retention rate.
3.) I build a residual monthly income.
4.) If I do take back a house, I refinance it for another 30 years
5.) The buyer will be responsible for all taxes, insurance, etc.

So what do you think? Good or Bad Idea
I think the people would be more likely to stay as they would be buying the house, and they would have an initial down payment tied up in the house.

Personally if I have to take back the house thats fine, I just don't want to do it every couple of months like with renting…I think doing it this way most people would stay in the houses 5-7 years before they default.

I know my uncle made millions by financing land like this in south georgia.

I also think it comes into investigating the people your selling too, check them out and make sure they half way decent people with a good job history. I also plan on staying with the lower end houses to start with, so I don't have so much tied up in each property.

But, please keep the opinions coming…and thanks!

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