Humboldt, IA · Member since 2013 · 58 posts · 5 votes
So it seems like a lot of property in my area has contracts on them. I'm not talking contracts that we think of when wholeselling. I'm talking where people buy a house under contract to pay the deed holder without having to get a traditional loan. For example, a guy is selling a rental property. He's notthe deed holder. He's the contract buyer but he rents it out rather than living in it. How would I go about dealing with something like that? I really don't want to buy if I'm paying what the contract holder is needing to get the deed from the deed holder.
Sounds like you're saying investors have purchased with a contract for deed or installment contract. That contract buyer won't have the deed until its fully paid.
The deed holder, unknown to 90%+ of investors, is that you can still buy the property subject to that contract. Buy it for less than the contract which is much like buying a mortgage at a discount.
You'll need cash, depending on the underlying contract you might be able to finance it with private funds, most lenders won't touch it.
Need to see what kind of contracts were done, the seller may be interested. Run it by your attorney. Good luck :)