BTW-I’m following the “J Scott” program.

I have the seller sign a Letter of intent to Lease and To OptionThe letter of Intent covers...Address, Rental Term, Renal Payment per month, Security Deposit, Possession Date, Option Sales Price (could new appraisal), Option Money (usually 3% or $5K min), Representations, Warranties, Covenants, and Indemnification, Legal Effect, Notice of Intent to Assign, Option Period (45 - 60 days)I have them sign the letter of intent (LOI), it goes to my attorney, and the attorney prepares the paperwork.There is an option release disclosure document that discusses that the buyer will be responsible for the following fee’s to be paid out of escrow at closing, which are for the release of the recorded notice of option, the assignment of negotiated purchase price, and the negotiated rent.2.

Be careful if you follow this advice.

If this is not the way for you then follow the previous advice given.

And then, actually follow up with them.

If there was a Hall of Fame for investors, Lonnie would probably be in it.It's too bad too that so many following this scheme did so as preditory dealers to the extent of having federal legsilation adopted to restrict the practice.I guess the best way to proceed is to make enough on your fist few deals, maybe sell the notes for cash and pay the fees to become a licensened mortgage originator and a dealer, otherwise you'll be limited to conducting business.BTW, Another similar "system" involves selling land, if it's zoned residential or can be used as residential raw land, it also falls under the SAFE Act.

I look forward to mining this site for useful bits of insight, regions or hot spots/regions of proven success.

If you loan to those with an ongoing proven track record in the rehab business, and they represent that the home is a flip, non-owner occupied, etc., it would be extremely difficult for them to claim you took advantage of them as innocent homeowners – entity or not.

I was being discreet because it's foolish to single out any particular company, when this practice is followed almost universally.

All the numbers work every which way I've analyzed them.Let me know if anyone has any leads I can follow.