Thinking outside the box...could this work and how?

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Larry F. · Answer

Great idea. You have to make the case to the owner that your service will increase the desirability of the home. Many sellers are highly leveraged into their homes and may not have the extra proceeds from the sale of the home. For your protection, I would attach a invoice and contract that can be collected at the sale of the home. Please make sure that their Agent is on board with your agreement. To your success!

Larry F

Jay Hinrichs · Answer

@Willem Young  yes you would think saving a home for someone and letting them live in it as a renter and disrupting their lives would be a benefit right ?

Well in our state that is totally illegal ... So this being a national community it is very important that when we talk about what works in one state very well may not work in another especially when it comes to uber contentious foreclosure laws and consumer protection.

Willem Young · Answer

@Jay HinrichsVery good point.  I would say to be very careful working with a homeowner in default.  Do not do so without seeking advice from a local attorney familiar with the laws in this regard.   My attorney advises and handles the paperwork to make sure I'm in compliance with the laws in Florida.  I personally feel the bottom line is that if I'm open and fair with the homeowner and offer them something they benefit from compared to having their home sold it's a win win but of course that has to be done in compliance with all the laws.

Jay Hinrichs · Answer

@Eric Armstrong  I think it would be a hard sell to most folks as they are not sophisticated enough to understand the various documents you may need to secure yourself.

depending on the state you could simply do the work and put a mechanics lien on the property.. In Oregon Mechanics liens are super liens and superior to any loan.

@Willem Young  The west coast states have all passed anti equity skimming and foreclosure rescue laws.. Must be very very careful in dealing with someone who is actually in default. Lest you get the rath of the AG come down on you like a ton of bricks  LOL.. Many were Florida based scam companies that really gave the industry a black eye.

Eric Armstrong · Answer

Thanks fellas.  I'm going to dig deeper.

Willem Young · Answer

A good way to do that to ensure your investment would be to deed the property over to an investment entity like an LLC and clearly define what the rules are between you before you start spending money on the property through the operating agreement for an LLC.  That way your investment wouldn't be lost.   For this I would recommend looking for those in foreclosure and about to lose their home b/c they would be most likely to work with you in this fashion.  I do that myself and offer the homeowner some money to help them move out to consummate the deed transfer or "purchase".   I work with an attorney to ensure that the property doesn't sell before we make the money from the sale.

Michael Henry · Answer

I would do a mortgage or promissory note with a personal guarantee. And make sure it is recorded to state the obvious.

Thinking outside the box...could this work and how?

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