question on using partners - Posted by Brent_va

Posted by Nate(DC) on July 09, 2001 at 13:27:33:

Probably the easiest way to structure it would be for you to get the deed from the seller and give the investor a deed of trust behind the existing first. That will secure their interest in the property. If the seller needs security also, give them a third deed of trust behind the investor.

That should do it.


question on using partners - Posted by Brent_va

Posted by Brent_va on July 09, 2001 at 07:46:39:

I have been looking at the pre-foreclosures around my area. There are alot of very nice houses in nice neighborhoods that are due to be foreclosed on soon. I put a add to attract investors for the funding of these properties. My plan is to get a signed contract or deed from the seller. Then use the partners money to pay the late payments and legal fees on the property to get the foreclosure stoped. Sell the property using seller financing at close to market value. With the proceeeds of the sell pay the mortgage off, pay back the investor, some for the seller. I am willing to pay the investor 50% on his money and have nine that are intersted now. They would like to know how there money is going to be secured. Do I put them on the deed? Not sure on how to give them security besides the equity in the house. Here is a example of one property:
mortgae:174,600(5 yrs old)
area comps:275,000
back pymnts and legagl fees: @10k-15k
sell prop: 260,000
proceeds of sell:84,400
pay investor:18,000( assuming he put 12k in the deal)
give seller 10k( to move and get set up in new reidents)
and there is still a chunk of change that is left over so I could be very flexible on the terms of the sale and terms of the investor. How is that I can asssure the investor that there money will be secure during the tranaction. I plan to pay the investor off within two months. Houses in my area sell very fast, so selling the house will not be a problem and the houses are in very good condition. Any input would be great. Thank you.