Is it fair??

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Posted by Ward-CA- on December 16, 2002 at 10:02:35:

In Reply to: Re: getting started in pre-foreclosures posted by Edward Nolan (Ohio) on December 16, 2002 at 02:49:03:

: The easiest way to find pre-foreclosures is to get a listing of future sheriff sales. Sales that may not be for a few weeks. Drive buy the homes knock on some doors and vwalla! Due to the time they have before foreclosure you may not be able to do a land contract, but by all measure you should try anyway. Anyone with ownership in a home can sell to you on land contract so long as they still own the home!

: Try this. Do a 3-4 yr land contract with the home owner for the amount of their payment. See if they can move out and get on their feet if you give them a few thousand. If the numbers look good and you don't have to give the bank a ton of money, lease option it back out to someone else. When you lease it out collect from the new lease option buyers the amount needed to pay her as well as most of the bank past due. Charge a little more to the newbies $100-200 over what her bank wants as payment monthly for your pocket. On the purchase option portion tack on 5-20k for yourself when they go to buy.

: When you tie up with the pre-foreclosure person, make sure you put a couple clauses in the contract in case things don't work out so you can get out without any hassle. I would only give a couple dollars to sow up the deal myself. You could tell the pre you would split any profits above say 25k. You could even only give 5% of anything over the 25k. But, they would have to waite for the money just like you, but, move out now!

: Does this make any sence?
: Talk with your title company they can help, if you don't have an attorney.

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Edward,

It doesn't make any sense to contract to receive title some time in the future when the seller would be willing to give it to you now.

So why do you suggest the use of a land contract?

And why do you suggest such a lopsided split of the net equity? Is it fair? Is it what you would want if you were the one in foreclosure?

Follow Ups:

• Are you kidding me? - Edward Nolan (Ohio) 00:49:54 12/17/02 (2)
  • C'mon, you know I'm not kidding. - Ward-CA- 11:10:48 12/17/02 (1)
    • Judegement calls. There's always those who complain - Edward Nolan (Ohio) 11:18:40 12/18/02 (0)

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Comments:
: : The easiest way to find pre-foreclosures is to get a listing of future sheriff sales. Sales that may not be for a few weeks. Drive buy the homes knock on some doors and vwalla! Due to the time they have before foreclosure you may not be able to do a land contract, but by all measure you should try anyway. Anyone with ownership in a home can sell to you on land contract so long as they still own the home! 

: : Try this. Do a 3-4 yr land contract with the home owner for the amount of their payment. See if they can move out and get on their feet if you give them a few thousand. If the numbers look good and you don't have to give the bank a ton of money, lease option it back out to someone else. When you lease it out collect from the new lease option buyers the amount needed to pay her as well as most of the bank past due. Charge a little more to the newbies $100-200 over what her bank wants as payment monthly for your pocket. On the purchase option portion tack on 5-20k for yourself when they go to buy. 

: : When you tie up with the pre-foreclosure person, make sure you put a couple clauses in the contract in case things don't work out so you can get out without any hassle. I would only give a couple dollars to sow up the deal myself. You could tell the pre you would split any profits above say 25k. You could even only give 5% of anything over the 25k. But, they would have to waite for the money just like you, but, move out now!

: : Does this make any sence?
: : Talk with your title company they can help, if you don't have an attorney.

: ================

: Edward,

: It doesn't make any sense to contract to receive title some time in the future when the seller would be willing to give it to you now.

: So why do you suggest the use of a land contract? 

: And why do you suggest such a lopsided split of the net equity? Is it fair? Is it what you would want if you were the one in foreclosure?


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