Wraps, land contracts, and the DOS clause - Posted by Rob FL

Posted by Rob FL on July 17, 2000 at 14:43:43:

I just recently started thinking about quick-turning pretty properties by taking “subject to” on existing mortgages and reselling using wraparound mortgages or possibly a land contract instead of just paying all cash for junkers. And I have a few questions.

  1. Does anyone use some sort of CYA letter for your new buyer? It would be one thing if I was in title and the bank gave me a hard time about the DOS clause but it would be quite another thing if a new buyer started getting hassled about it. I can see them filing the lawsuit against me now.

  2. How do you handle the property insurance on this? I got some good answers the other day about this, but when I turn it over to a new buyer then what? Should I add them to the policy as an additional insured?

Thanks in advance. (Yes I know, I need to buy the course.)