Equity Purchase Act 1695

1 Reply

Originally posted by @Gary Wright :

who can tell me about this in California.  I hear this is a great way to go after foreclosures.

Gary

I would recommend you use software platform like property radar "the one I use" and search NOD and NTS properties with equity.

Make this simple, your objective is to purchase the owner's equity.  Determine their equity position and your cost invalved with purchasing, rehabilitation, and sale or renting what ever your exit strategy is. Then structure a contract to take over their equity.  

You have options ranging from an outright purchase for cash or a small down payment while taking over their existing financing.  The details are for you and the seller to work out.

In California we have a code called CC1695 it protects none professionals sellers without a deep understanding of real estate, from "dealers" or those of us that operate as a corporation or professional property buyers/sellers.  

Consumer code 1695 has very spicific things that need to take place for a pro to buy a destressed property from a non-represented homeowner.  I would recommend obtaining direction from whoever guides you on such legal compliance maters. 

This code instructs investors as to what type of disclosure is needed so you don't take advantage of an unsufisticated seller.  This is nothing to fear just simply learn how and what to disclose and you will be fine.  It will protect you from a future of lawsuits and make you a better investor.

This is about the only type of property  I ever go after.  There are more available  than my company could ever get to on our own and I know there are hundreds of investors seeking these little gold bars that are hiding in the long uncut grass in neighborhoods all over the country.

Good luck

Jim