Posted by aaron on January 20, 2007 at 15:59:35:
I would like to know if anyone on this board has come in contact with the John Alexander Inverse Purchase System. This is how it works
system is this:
- Locate a FSBO
- Negotiate a deal with the seller.
- sign contract including clauses that allow you to show the house. Also have seller sign investor’s disclosure notice.(states how you are going to make your money between what you buy the house at and for what you sell it at.)
- Show the house 2x per week for 2 weeks
- Take mini cred apps from sub prime buyers
- Send them to your sub-prime mort broker
- Get one under contract (the one most qualified to buy house) for full Appraised value
8.) Send seller an invoice that the seller signs agreeing to pay investor the diff between his purchase and the appraised value and works as a contract release. - Fax seller copy of investor’s contract with end-buyer
- End buyer and seller go to close.
- Title company or closing agent sends you a check.
Now if equitable title vests in the purchaser then isn’t this the person who is now recognized in equity as “owner of the property”, because real and beneficial use belongs to him and the original owner retains only the legal title? And isn’t this why the seller usually retains one of the beneficial rights in a regular sales contract, which is the right to “possession.” Until closing and funding have occurred? And isn’t it true that the right to a “profit” is never refused by the seller in most contracts and therein your ability to resale the property for a profit?