My question will help an investor client of mine interested in purchasing 18 builder closeout units in a project and would like to lease/option them.He was willing to give 80% of their rent toward the equity, and price the property at current appraised value, with 8% increase per year for the 3 year term.With the mortgage mess, this may help sideline buyers get into a property.Any thoughts on where to find these hard to finance people?

I have a feeling as long term mortgage rates increase, most lenders will want to call these loans and relend the money at higher rates, though.Just because a lawyer is willing to help you with a transaction, doesn't make the transaction legal.

And instead of looking for investors to cap on these deals (an option arm is meant for investors and not the average Joe) they put homeowners that in most cases choose to make the min. payment for some time. they would soon realize that their payment was increasing and never understood what deferring the interest meant!

This can increase your legal liability as an agent.

Rental prices have increased by about 20% in the last two years.

Values are increasing rapidly.

The market has slowed and inventory has increased but prices have not come down much, maybe 5 to 10% so far.

It's taken awhile to figure out what path I wanted to venture down and after much thought and consideration, I've committed to becoming a real estate investor.

You might want to increase your funds that you have in the bank right now for 4k is not too much money when it comes to the CA market!

People like to talk so once you have critical mass the conversations should in crease (number of topics, number of discussions per forum).John Corey