All Forum Posts by: Account Closed

@David C. Thanks for the info. The insurance and tax aspects are the main elements of the transaction where I am a little foggy in understanding. I've been scouring past forums for specifics, and have come up with something to work off I think.

I don't understand why a lender would do that? The loan is being paid. I'm helping someone pay off a mortgage that they can no longer afford, less they take a huge hit and have the price beat down by some wholesaler. Yes, I'm looking to rent it out for a profit, but it may also be a good way for an investor like me to break into real estate until I'm able to qualify for loans of my own. All that beside, how would you suggest I go about informing the lender? And would a clause in the sales agreement stating that the seller could take back the property if I am unable to pay, resolve such an issue if the DOS was called into effect?

Thanks everyone for your input? After talking with my lawyer this week Ill decide whenever or not to write the lender a formal letter.

Jon,

Thank you. The seller understands fully that the loan will remain in her name and all the risks you have listed. I still plan on having an attorney present at closing just to make sure her understanding is legally recorded. Would I need to have the deed signed over to my company name or can it be transferred to the individual?

Hi everyone,

So I understand the basic concept of a subject to agreement, where the seller agrees to sign over note or deed to the buyer, and the buyer begins making payments to the existing mortgage in lieu of the seller. I have a seller that is willing to agree to such a sale, but this will be my FIRST deal, and I want to make sure I dot all my I's and cross all my T's on this one. If someone could offer me some step by step info so I don't miss anything that would be great. Iv'e heard from threads and videos that others use their company name. Does this mean the deed cannot be transferred to an individual alone? Its questions like these that are leaving me stumped.

The deposit was refundable anytime before the scheduled date of completion. I was more or less just curious if anyone had had any success with such a strategy in the past. Thank you for the feedback however.

I wanted to ask about a certain strategy I read in a book called, "Real Estate Investing From A to Z," by William H. Pivar. The book was published in 1997 and is basically just a detailed look at the many possible ways to invest in real estate which includes various stories from investors.

One investor in this book sold his home for $100,000. Instead of buying a new home, he put down a housing deposit (most cases 10% of the cost of the home) for a home that had yet to be built in a growing subdivision. The deposit was refundable and demand high for his slot, so he would wait until building was almost complete, all competing lots had been sold, and then would sell his housing deposit to another home buyer for a substantial profit. He and his wife used all of the money they had received from selling their original home to buy and sell these slots, and in the end earned over half a million dollars (so the story explains).

My question is, is this possible? I can find no such available information online, and situations such as these are very applicable to the area I am in. I actually am currently in the process of putting a deposit down for a very popular new subdivision, and am contemplating buying out the remaining slots as well to flip for profit. Any thoughts, suggestions?