Have the owner put a mortgage against the property in which you are shown as the lender of $5K. You don’t actually loan the money. This will prevent the seller from cutting you out of the deal.
Then there is a new purchase contract between the current owner and your buyer. Now the buyer’s lender should love the deal. A seasoned situation.
When the sale goes through, you get a “demand letter” from the escrow company or person asking what you are owed. You put in a “demand” for whatever you are entitled to. The buyer and sellers both ok that payment to you on their closing documents. You walk out with a check.
Anyone - Help Structuring this Deal - Posted by mei122@aol.com
Posted by mei122@aol.com on September 09, 2003 at 21:37:28:
Here is the situation… I have come in contact with a home owner whose property is in foreclosure. The owner is willing to do anything, and I do mean anything, to get the property sold. The outstanding balance on the mortgage and back taxes total $65,000. The house appraises for $70,000. I have located a couple who is willing to buy the house for $70,000. How can I structure this deal so that I can pocket all or most of the $5,000 difference in the equity and the balance? I tried to have the owner deed the property to me, but due to title seasoning issues from the lender for the buyer, that didn’t fly.
The owner doesn’t care about not getting money for the deal. He just want OUT! I want the $5,000. How can I get it?