Posted by JohnBoy on May 01, 1999 at 24:50:40:
I’ve never ran into that problem. I tell the seller that I’M the one that is responsible for their home. Their contract is with ME. If for any reason my tenant does not perform, I still guarantee their payments. If for any reason my tenant was to trash their house, I’m responsible to fix it. Basically I inform the seller that I’m entering into a legally binding contract with them that makes me responsible for their home and I’m responsible to them for their payments. If for any reason I messed up in any way, they would be able to sue me for any damages.
When you present yourself as an investor that does these type of transactions on a consistant basis and explain how your taking full responsibility for their property, they don’t seem to be to concerned about what happens if I was to screw up. If anything, they tend to be more concerned about the tenant I would be putting into their property. After insuring them that I’m the one that will be fully responsible for everything they seem to feel more at ease with that. They don’t question about what happens if I don’t perform. If the seller is motivated to get out from under the property, then they seem to be more concerned whether I’m willing to help them out of their problem rather than worring about me. But if they happened to ask such a question and I wasn’t able to satisfy them with how I presented myself, then I would offer to show them my credit report to show them that I would have a lot more at risk then to worry about trying to pocket all my tenants rent payments to me and not pay them their payment. If that wasn’t enough to satisfy them then they aren’t motivated in the least to get out from under their property. NEXT!