Flipper/Rehabber · Bedford, OH 216-678-4789 · Member since 2016 · 35 posts · 6 votes
Im in talks with a seller to buy an off market property in NE Ohio with my goal being to rehab and flip. He is currently on a land contract in which he owes about 20k on, and he is asking 55k for the property. I am still putting numbers together to create an offer as there is fair amount of rehab needed on the house. i have not seen the contract sell is on. Called couple title companies and they were not able to provide any useful info.
In order for me to acquire this property, how would i go about doing this? I imagine the land contract has to be taking care of first, and the 20k owed be paid off beforehand?
Zanesville, OH · Member since 2020 · 18 posts · 21 votes
6y
Hi A.R!
Maybe I can help. It would depend on several things, such as if his land contract was recorded. I would suggest it be a typical closing, where the lien holder of the land contract (original property owner) be paid their remaining $20K, and proceeds then to your Seller. My title company services all of Ohio, and we have a legal team on staff. This might be an ideal situation as Wayne stated to have an attorney assist with this. You definitely need to have the title search done, to protect your investment. I am not sure that you need to have the land contract transferred to you first, etc etc. I think that may be an unnecessary step and expense. Reach out to me if you want to discuss further, I'm happy to offer what I can to help!
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
6y
He would assign/transfer/sell the land contract to you, however that is done in your state, then at some point you have to pay off the $30k still owed. Do a title search first, the seller/recorded owner may have other liens against the property. Use a local RE attorney familiar with the Ins and outs of land contra acts in your area.
Zanesville, OH · Member since 2020 · 18 posts · 21 votes
6y
Hi A.R!
Maybe I can help. It would depend on several things, such as if his land contract was recorded. I would suggest it be a typical closing, where the lien holder of the land contract (original property owner) be paid their remaining $20K, and proceeds then to your Seller. My title company services all of Ohio, and we have a legal team on staff. This might be an ideal situation as Wayne stated to have an attorney assist with this. You definitely need to have the title search done, to protect your investment. I am not sure that you need to have the land contract transferred to you first, etc etc. I think that may be an unnecessary step and expense. Reach out to me if you want to discuss further, I'm happy to offer what I can to help!
Maybe I can help. It would depend on several things, such as if his land contract was recorded. I would suggest it be a typical closing, where the lien holder of the land contract (original property owner) be paid their remaining $20K, and proceeds then to your Seller. My title company services all of Ohio, and we have a legal team on staff. This might be an ideal situation as Wayne stated to have an attorney assist with this. You definitely need to have the title search done, to protect your investment. I am not sure that you need to have the land contract transferred to you first, etc etc. I think that may be an unnecessary step and expense. Reach out to me if you want to discuss further, I'm happy to offer what I can to help!
I just took a look online at the Cuyahoga County fiscal recorder. It looks like it was transferred from 1 LLC, to the now current property owners LLC via quit claim deed about 2 years ago. I am not seeing anything else recorded regarding the Land contract between the original property owner and my seller that i have been in contact with.
Aimee I would like to speak to you more about this along with the cost of services you can provide. What is the best contact phone number for you and/or your company?
Zanesville, OH · Member since 2020 · 18 posts · 21 votes
6y
@A.R. Coningsby I would definitely do thorough title search on this. It may be an "internal" and contract, from one LLC to another, yet the same individual or company owning multiple LLC's. Nonetheless, a closing would pay off the land contract. Even if it's not recorded, you wouldn't want the Land Contract holder to not get paid their balance and have legal recourse from that. My direct is SEVEN FOUR ZERO 647 9361, contact me anytime, happy to help!
Real Estate Broker · Cleveland, OH · Member since 2012 · 771 posts · 252 votes
6y
It depends on how that land contract was structured. It may be able to be assigned to you, where you step into the seller's shoes and take over payments on the $20k balance, and just pay the seller the remaining amount you negotiate in cash, note, etc. I'd make sure you use a knowledgeable title company to facilitate this to avoid potentially serious issues with the title down the line, and I'd also consult with a local RE attorney.