Posted by MoniqueUSA on February 07, 2002 at 06:32:37:
"My profit would come by raising the monthly amount to something above $2K?"
Yes, your monthly cashflow comes from getting a higher monthly amount from your buyer than what you owe on the mortgage. If you will owe $2K/month on a $220K loan balance at 8%, and let’s say your buyer’s mortgage is at 10.5% on a $250K loan balance (after their down payment), and their payment is $2400/mo with taxes and insurance, then you get the $400 difference.
You also get the difference between your loan balance and their loan balance when they pay you off on the backend.
"Would I then put the title in a trust and make the buyer the beneficiary?"
Actually, no. This would be selling Subject To rather than on a CFD. You would BUY this way. But to sell on CFD, you use a CFD Agreement. Both Louis Brown and Bill Bronchick have these documents in their courses.
All that said, Anne’s post above recommends to sell on L/O rather than CFD in MN.