Contract Flipping - Posted by Dan

Real Estate Investing Real Estate Law
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Posted by colvegas on November 08, 2006 at 17:56:20:

Dan,
The issue I can see is that the 1st lienholder may have a problem with there being a 2nd since that may affect the ability of the borrower to pay the first.
I would check with a loan person or real estate attorney to get their feedback before proposing this.
You are suborindate to the first so more liability on getting paid on your fee…holding that 2nd position.

I would try to get your monies at the close of escrow so it is reported on the HUD 1 on the sellers side so the lender has full disclosure to him soeven if you did not get 90k you could still get a good fee for your services, either way good luck…
If I can help further my cell is 702-400-7632

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Contract Flipping - Posted by Dan

Posted by Dan on November 08, 2006 at 16:29:59:

When contract flipping, say I go to contract with a seller for a sales price of $300,000 and I re-sell the home to a new buyer for $390,000. Rather than collecting my profit from the seller at the close of escrow, can I use my profit to carry a 20% 2nd trust deed for the buyer and have them make monthly payments to my corporation?