My risk was the $10k spread between what I had into it and the buyer’s down payment.

It's an easy, no risk type deal.

There shouldn't be any risk of not being able to move in on the move-in date after the lease agreement is signed, should there?

Your right it is almost the same but birdogging allows someone to make money with virtually no risk since you are not doing any contracts.

Bulk REO contains inherent (and sizeable) risk.

Instead of holding on to your loan and facing the risk of interest rate change (since bank receives fixed payment from you for 30 yrs in exchange for lump sum) - they will sell this (to someone who wants to submit a lump sum in now exchange for receiving fixed future payments for 30 years, like an insurance company).The bank is an intermediary between buyers and sellers of assets - they make a cut on the spread and transaction costs.

I wouldn't want to risk starting where I live there is absolutely NO demand right now.

The Fed announced a plan to bail peole out if they are at risk of foreclosure:http://news.yahoo.com/s/nm/20090127/ts_nm/us_usa_fed_foreclosureOf course, if you were responsible and took out a loan that you could afford you are out of luck.

Not really worth trying to time a bottom for and risk losing out on a great property.

Billy gets a lower payment, but has the risk of having to come up with a large payoff in five years.