Today, more than ever before, cash is king. In many States, only those with certified funds for the full offered price in hand can even bid at foreclosure sales. Very few REO purchases can be financed by non-owner occupants. To have much chance of success, Short Sale offers have to be accompanied by written loan approval by another lender, or by proof of cash funds. Where is this cash going to come from?

Most of the time we think of seller financing as being provided by the seller when we buy, but when it comes to converting equity into cash flow, seller financing and leasing are the two principal techniques we use. The best thing one can say about seller financing that you provide to a buyer who is buying your house is that there are very few rules except to create a Note or Contract that spells out the terms of the transaction and to find a way to secure it. As a rule, when a seller provides financing, the price can be adjusted to reflect any risk that might be posed by buyer’s with lower FICO scores, and the interest rate can be fiddled according to the degree of motivation of the parties. Additionally, net settlement costs are usually lower when the seller can create the documentation he or she needs.

I am always on the lookout to buy defaulted notes from small loan companies. You know the kind that advertises on TV to consolidate debts or to finance home improvements. These notes can be bought at large discounts because the small lender doesn't want to foreclose and have to make payments on the underlying 1st mortgage loans.

Betty Jo was a recently divorced go-go girl who was just about gone-gone. She'd set her sights on living in a swinging singles apartment house in order to find a new mate. Her present house represented more of an obstacle than an asset in her quest, but she needed the equity to be able to afford the rent for the apartment.