Assign Contract??? - Posted by Robert


#1

Posted by Cesar on December 19, 1998 at 14:44:32:

Two suggestions:

  1. Start a corporation that will be the one involved in the flip so that it separates the entities

2)Find other lenders that WILL do it. Your broker will be able to find them for you.


#2

Assign Contract??? - Posted by Robert

Posted by Robert on December 19, 1998 at 14:09:18:

I am under contract to purchase a property that I was going to flip to my wife at a higher price to cash-out. This allowed us to benefit from the cash-flow and cash-out from the equity in the property. However, the lender we have been using to do these “arms length” transactions are telling me that they can’t do it anymore. My main objectives are to get the property and the cash-out as well. Can I assign the contract to her or anything like that? Does anyone have any suggestions or advice?


#3

Re: Assign Contract??? - Posted by JPiper

Posted by JPiper on December 20, 1998 at 09:37:52:

Since when is a transaction between you and your wife an “arms length” transaction?? I’m amazed anyone let you do ANY of these. Count yourself fortunate…unless you have been deluding the lender…in which case we don’t call that “arms length”, we call that fraud.

Forming a corporation that you control to flip properties to yourself to evade lender requirements is another fruadulent technique. People do it…probably every day. But it’s called fraud.

I understand that you would like to acquire property with a bank loan, and get your equity out in the form of cash from the bank as well. This sounds great, but it’s not what banks do unfortunately. Most of the techniques that you will hear of involving methods to do this will require fraud on your part.

So unless you are intent on using a fruadulent technique, you’re going to have to figure other methods out to buy property…perhaps some combination of non-conforming loans coupled with seller financing and some cash of your own, followed by private financing and/or other creative techniques.

JPiper