Could you explain to me how you go about getting the deed. Who are the prospects that you do this on? And how? I had a friend that did this, before I got into the real estate business. I have only been doing flips and simaltanious closings.
Does the deed thing work only on people relocating? How do you find them? How do they go about deeding you something that they don’t own? What happens if you can’t sell or lease it out, does it effect your credit?
If it will work I’m willing to do it tomorrow! Tell me how!
Thanks in advance,hope that wasn’t too many questions,
What’s your preference -Subject To, Wrap, L/O ? - Posted by breeves
Posted by breeves on December 09, 2000 at 13:47:20:
I would like hear some feedback from some of our more experienced investors.
If you find a seller with little equity but motivated to be relieved of their payment, what is your order of preference to offer the seller. I talking about nice houses, no repairs and a existing mortgage payment that is low enough to work with.
I assume “Get the Deed” is first. But if that is not possible, would you offer a sandwich L/O or buy on a Wrap(Land Contract)?
I understand some of the differences is that the L/O is easier to evict the end buyer than a Land Contract. Land Contracts may be able to obtain more down pymt from the end buyer.
In general, what do ya’ll do or what has proven to be the preferred technique?
I am totally against buying on a contract for deed. I have been having success landing properties that other investors have offered L/O and contracts. Because I am using the Pactrust the title goes into trust with them as initial primary beneficiary. While I control they are happy and get a little on the end. I, in effect, buy their equity with cash. The more cash they get the more equity I buy. They also easily see the benefits I can offer the new resident and why they would also prefer this approach.
You are right. It depends on how you CAN get it, and what the numbers dictate that you can do with it, or how the numbers dictate that you need to get it. That’s really all there is to it, once you’ve ones TO get! If your market has a lot at or near 0 equity, you might want to check out the PACTrsut too. cal-equity.com I think it provides a little more flexibility and security than a straight LO. Read what it’s about on their site, then they have a discussion board too to post Qs.
Re: What’s your preference -Subject To, Wrap, … - Posted by WilliamGA
Posted by WilliamGA on December 09, 2000 at 14:18:57:
breeves,
I really try to “get the deed”. I prefer having total control of the property and you have so many more options available to you if you have the deed. I usually don’t even offer any other way and have almost always been successful in taking the house that way.
I suppose if it was an exceptional deal and the seller was just totally opposed to subject to, I would then offer the L/O as an alternative. I would write it up for as many terms as I could get and make the final purchase price the loan balance at the time of closing.