I’m not sure how much of your comment was tongue in cheek. I’m not saying that a PACTrust would not work. But I am saying that I don’t think it would be appropriate here.
A low income person, with a minimal equity position if any can not afford to gain the complex knowledge needed to implement your solution. A knowledgeable investor that does know your system may even have a tuff time at this economic level.
Learning how to L/O or owner finance even with that dreaded DOS clause is the most that can be expected of a novice. Then you could always turn into Robert Allen and go there and show him how it is all done.
Heed Need Advice(real estate) - Posted by Ken Brown
Posted by Ken Brown on December 04, 1999 at 10:46:54:
HI,
I own my own house been there last 6-8 years,and I want
to move ,the house is in the city ,the neighbor hood is
kinda ruff ,I think its only worth 10-16000k. 3 bedroom
row house and it needs some fixing . I am trying
to get to in this special program for low income families
but, one of the requirements is that you don’t own a house
or have one in your name, credit is fair , I logon a lot
to creative online real estates web page , how can I take
advantage of this situation???. I don’t want to rent The
old property out. maybe some of you real estate hot shots
out there can help me out of this. How can I use this situation to my avantage? and maybe even make money???..K BROWN.
Re: Heed Need Advice(real estate) - Posted by Bill Gatten
Posted by Bill Gatten on December 04, 1999 at 18:50:07:
Ken
In answer to you conundrum, buy a new home with an owner-carry PACTrust, and put the old one in a PACTrust too, and make some money on it with which to buffer the payments in your new one.
With a PACTrust™, you don’t need to qualify for a loan, and you don’t need any more down payment than the seller might insist on. The further OTB (over the barrel) the seller is, the less they want from you (that’s why I like low or marginal equity properties…I hold 'em till they appreciate to make my money).
Ken, if you find a house you like and a seller willing to stay on the loan, let me know, I’ll pick it up for you and you can have it…all of it. All I want is all the equiety there may be in it at present; $2,500 more money up front than it costs me; a $100 per-month positive cash flow (e.g., your payment to me is $100 higher than mine is to the bank); and half of any appreication there might be by the time our trust terminates…if any. In other words, when the PACTrust is revoked and you either sell or refinance, we split the profits.
Or…you can cut me out of the deal and just let me help you with doing it youself (since you’re on to my tongue-in-check scheme here).
Posted by RRSmith on December 04, 1999 at 13:06:24:
Dear Mr Brown: You already have a house, so you can not buy through the first time home buyers special program. So what else can you do? Maybe you should study up on REI and buy a rental house to switch into and move to?