Posted by Marc/Atl on March 01, 2000 at 18:58:20:
How’s it going Steve. I need a favor from you. How can I find some articles on “taking deed subject to the existing mortgage”. What exactly is this. It sounds like a techniqe I should know about. Any help would be great.
I missed the convention due to family illness, but I’m wondering if I’ll see some of you (ATLiens)at this month’s GAREIA meeting. Also will this meeting help me in this area.
Looking forward to meeting you.
Marc
Is this a good idea??? - Posted by John
Posted by John on March 01, 2000 at 08:40:17:
I hope that I’m not BASHED or BRUISED for what I’m about to say: But I am a REALTOR. Before I am judged and foung guilty of being the typical narrow minded agent who hasn’t the time nor the mind for NO DOWN BUYERS, I’ld like to say that my main purpose for obtaining a license, was to have access to all the properties on the MLS. I’m getting ready to run an ad in the local paper L/O, no bank qual, many to choose from… After sifting through the inquiries, I plan on selecting the ideal L/O canidate(s) and take them shopping through the MLS. Once they find “the one”, I’ll buy w/cash, refinance 100% instantly, and L/O to tenant/buyer for a higher $. The option $ would cover any out of pocket expense that might be incurred w/ the purchase. This sounds very simple and was wondering if I’m missing anything. Thanks in advance for your candid advice.
John
No! - Posted by Bud Branstetter
Posted by Bud Branstetter on March 01, 2000 at 11:38:01:
For the reasons the others have said. That new loan takes several thousand of your profit and puts everything you own as collateral. It decreases you ability to get additional loans.
You indicate you will select with the ideal L/O candidate then you say you will buy all cash. The idea of a sandwich L/O is to avoid new loans. Selling on a L/O is because of how you buy. It should not be the primary way to sell.
You’ve got the right idea of investing in real estate buy you’re missing the fundamentals.
Re: Is this a good idea??? - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on March 01, 2000 at 09:25:46:
Excellent.
Most wannabe investors seem to think that investing has nothing to do with having something to invest…Duh. YOU have already gotten past that stumbling block, congratulations. Shop carefully, and good hunting…ED
Re: Is this a good idea??? - Posted by Steve-Atl
Posted by Steve-Atl on March 01, 2000 at 08:57:44:
John:
Your plan sounds unique to me. It seems to depend on your access to cash to buy the property and your ability to “refinance 100%”. You may want to talk with a mortgage broker to be sure you can do that based on your credit and the number of mortgages you currently have in your name.
Most investors do it differently from your plan. They find a motivated seller first, then l/o or buy the house subject to the existing mortgage. Then you have a product to market to the “no bank qual” buyers. This method does not require the cash or credit that your plan requires.
I suggest you learn more about how to buy on l/o and taking a deed subject to the existing mortgage. There’s lots of info on this site. I learned these techniques from LeGrand but there are other good teachers.
Good Luck!