Posted by Chicago Katrina on January 24, 2003 at 10:28:14:
By “Occupied” do you mean the only person on the deed? You can just get a loan from this individual, but specify in the deal that it is a signature loan, not backed by the property with a recorded deed. Then you can offer whatever you want in terms of return, but I think that whomever this investor is, he/she would have to really trust you, since esentially, they have very little recourse if your assets aren’t pledged.
I have a friend who did something similar-he got owner financing for a building and the seller agreed not to record his note. My friend then appeared to own the property free n’ clear top the banks. He easily got rehab money and now has 3 $300k condos and one retail space on the first floor.
But he is an honest person, and pays his loan and will soon pay off the seller. If an unscrupulou person was in this situation, it would be easy to screw the banks. That’s why they are so cautious…
Sooo… it can be done, but your investor has to agree upfront and understand that he will have no recorded security!
Good Luck!