1-800 eschew obfuscation.com - Posted by karp
Posted by karp on November 05, 1998 at 20:39:42:
Ugh. I wanna be diplomatic here but I just can’t.
What a crappy way to do this sort of deal.
I am a lender and I know why you can only get 65-80% of what you need. But that’s not the point. The point is you are doing this whole type of deal in a really cumbersome fashion.
But first a message from Somebody other than me:
PLEASE BE ADVISED THAT YOUR STATE MAY CONSIDER THIS TRANSACTION A “LOAN” AND IF YOU ARE SWIPING TOO MUCH EQUITY YOU MAY BE BREAKING USURY LAWS.
Having said that, repeat after me:
Step1) they quit claim to you, you get their loan current.
Step 2) You lease option to them for a period of say 180-360 days, your spread each month pays a good return on your funds you used to get their underlying loan current.
Step 3) They exercise and buy it from you for a higher price- bingo there’s your profit. OR they don’t you kick em to the curb and sell the house.
aka Karl Hartley