I am a total newbie to the REI game. I have read many books and listened to everyone and I have formed a bit of plan for investing and I would like some feed back from seasoned investors.
- My plan is to buy home homes under value for cash.
- After closing finance at 80%
- I will then resell them at value on contract to Hispanics.
- 10% down; APR my rate + 3%
- Balloon payment due in 24 months.
A little background: I have a business that deals a lot with Hispanics. I have come to realize that they are excellent customers and pay there bills. They want to own homes but they can not obtain financing normally. Many have 10% to put down and once they obtain ITIN #'s (which my company does) and pay by check for 24 months, they can get a mortgage.
I would like input from others. Things to worry about, etc. I am also looking for a solid contract to use for the sale.
Thanks