Originally Posted by samclem
Even without any fix-up, this should be recognized for what it is: a job, not an investment. Except that this job requires an investment. And dealing every day with folks in tough economic straits. Peopel that have made poor decisions in the past. About an issue of survival to them (shelter). There will be big emotions and possibly violence. Your money and property will constantly be at risk, and there will e gobs of paperwork (evictions, back taxes, insurance). Other than that, it is fairly worry-free.
Great post above. I saw the Nightline clip- he does have an interesting "interim participation window" in the whole foreclosure process.
He creates value for himself through:
1. Lowballing on the property initially
2. Setting up the "$500 down, $400 month" financing package
He whips these together and then sells/dumps the paper to groups of investors.
It is more of a j*b than investing. I'd much rather "click click click" from my couch and buy index funds....