Posted by Heidi W on January 02, 2003 at 12:10:24:
Why won’t he buy it directly from the owner himself? Perhaps he feels you’d have better negotiating power.
Regarding legality, I suppose if you ‘hid’ the fact that you were related to the ‘tenant’ you might be walking a thin line - but then again, who says it’s the sellers business?
I’d make sure your Grandfather paid you for the effort and was capable of buying the property from you before you contracted to buy it, otherwise you might end up having to sell to someone else, or having to evict your Grandfather.
I am a newbie to the Real Estate. One possible oppurtunity I have is through my grandfather. He wants me to buy the house he lives in from the owner (at a discount). He then wants me to sell it to him. I wonder if this is legal to do and if so how would I go about doing it?
Erik:
Have you and your grandfather negotiate to buy the home directly from the current owner/seller. The seller can elect to SELL to you both and structure a sale where he/she will also finance you both by carrying back owner financed “paper”…
If the transaction and owner financed “paper” is set up correctly, the seller can then readily convert this “paper” into a lump sum cash payout amount and move on down the road. You and your grandfather would then be obligated to make the installment payments on the Note that was transferred to a Note investor (like Sunvest).
Feel free to contact me if you need assistance in how to make this happen.