Posted by Michael Morrongiello on February 01, 2002 at 22:58:48:
It is always a good idea to wait until AFTER the property sale takes place and is closed (even a day) before purchasing the Newly created Note (or “LC” Land Contract)from the property seller who is financing your buyers.
However, since you are dealing with investors who are the purchasers rather than Mr. & Mrs. Newbie homeowner, the risk assesment I see for THEM to try to allege that YOU have origniated a loan, possibly violated REG Z disclosure requirements, etc. as opposed to simply purchasing the property sellers LC is minimal…Nonetheless, it may make sense to have both the Property seller and LC payor execute some sort of disclosure statement that forces them to acknowlege that your investment in purchasing the sellers LC is NOT a loan to the borrower, that it is not a loan type transaction, and that that they all acknowleged such.
To your success,