All Forum Posts by: Geoffrey Pierce

Hey, all. Can I get some feedback why this and another post in the Buying and Selling discussion with the same question got zero responses? I want to make sure I'm asking the right questions in the right areas. Thanks.

 I've worked with him before, and he's mentoring me. He's a Tasmanian Devil in that he's got ridiculous energy and never stops dealing. About 100 deals under his belt. I know the area roughly. Lived in the area for ten years. Don't know the exact neighborhood. 120k equity as is, and has investor offers for 350k, but he's a hard core buy/hold guy. Will bring his contract to my atty. Thanks.

I have a time-sensitive out of state lead where an investor son wants to buy the owner mom's house in arrears. She'll hold a silent second for me bringing the loan current and I'll be a 50/50 equity partner. What are my risks and their solutions? 

For example, he'll put me on the deed, but that just exposes me to him potentially abandoning the property and leaving me with the full mtg obligation. Or the due on sale clause kicks in. What do I need to consider and how do I protect myself if I do this?

That said, would you take a small 26k 2nd on a 435k ARV buy hold for 50% equity with current purchase/rehab = 75% ARV? If so, how do you protect yourself?

For example, he'll put me on the deed, but that just exposes me to him potentially abandoning the property and leaving me with the full mtg obligation. Or the due on sale clause kicks in. 

Would you be a small 2nd on a buy hold for 50% equity? Purchase/rehab = 75% ARV? If so, how do you protect yourself?

I have a lead where an out of state investor son wants to buy the owner mom's house in arrears. She'll hold a silent second for me bringing the loan current and I'll be a 50/50 equity partner. What are my risks and their solutions? I'm researching, but it'll go away fast. 

Out of state SFH property in arrears. A son is negotiating with his owner mom who is behind. The son needs a cash partner (me). He has another investor offer on the table for 350 cash, but the son wants to buy/hold and is offering me 50/50 equity partnership.

I was told no to the scenario below by a mentor, but didn't have time to get the why. He just half-joked "Get the deed, or don't do the deal."

The questions: 

1) In what ways can he screw me? 

2) How can I protect my position; contract. 2nd mtg, ...? 

3) Is the deal doable/worth it?

Thanks.

The deal: Purchase Brrrr via sub to with 26k down from me for arrears/rehab. Balance payable at ($xxx a month for xxx months) I become 50% equity partner. If I want an early exit , I get 50k at 18th month, otherwise... I'll negotiate some more pending this being worth pursuing.

The house:

435k arv

272k mtg

  26k arrears & rehab + 29k profit wanted by mom

327k purchase = 75%

2100 rent x .85 vacancy = 1785

1735 mtg service