Don't do it. Here is the deal. I am currently a mortgage banker and I used to work with a guy that did tons of investor loans for credit investors and for real estate investors. Here is the way it works. The investor finds a house that is at a discount or usually what happens is that builders would have a few houses left on their inventory and they wanted to get rid of them so they would sell them at a discount price.

The investor (person who finds the house at a discount and also finds the people with good credit called credit investors ) would buy the house for full market value using the other persons good credit.

He would make a consignment agreement with the builder and get paid outside of closing or I like to say under the table. He had a hard time finding title companies that would allow this becuase it is a very gray area of the law. Most banks interperet as illegal because in a sense they are buying a house and getting money back. The bank has the biggest chance of losing their ass on these kinds of deals. Because they were financed at a 100%.

The investor would split the money with credit investor or anyway he saw fit and he was supposed to find a tennant for the properties sell it to them on a lease purchase so they could pay you the monthly payment and you would pay the house and then after a year they could buy the house from you and take it off your hands.

What would happen

The investor would forget to pay the payments causing the credit investors credit to dive bomb to subprime levels. The investor never found anybody to lease purchase the house and ended up leaving everybody high and dry. The credit investor is responsible for the payments keep up, taxes of the house not the real estate investor because he doesn't own the house YOU DO. You end up getting corned hole. And most of them take a huge lost trying to sell the house because you bought it at inflated price and financed 100%. So you have a hard time paying the payments because the investor ran off with all of your money. You can't sell the house for what you bought it for because you paid way to much for it. You have no idea how to get rid of it or what to do because you heard about this from a friend and you didn't research it enough and you are not experienced in real estate so you file bankruptcy and learn to never do that again but only through lots of heart aches. Any questions. I have seen this happen first hand with a guy that stole 100's of thousands of dollars and ran off. He faked his disappearance moved to another state but the cops found him in California but it didn't matter because he had some pretty complex agreements with the credit investors that basically got him off with nothing to pay.

Email me questions sjoshuabrown at yahoo