Is this deal Legitimate? - Posted by Miraclepockets
Posted by Miraclepockets on August 10, 2003 at 01:32:48:
I got offered a deal from a seasoned invester. It breaks down like this. he has been renting a condo as a trustee on a property, he does not own it, he just contracts with the owner to rent it out and collects the profits after he pays the mortgage. He claims that we will do an installment contract with the owner, have them sign over the deed and that I will take over paying the mortgage which is in the owners name, who currently lives in boston. the insurance will also remain in the owners name. Now my major question is why would the owner sign over the title? for debt relief? what is in it for them? and who gets the equity if she does sign it over, do I? and if she doesn’t all I get is the rental income monies I can generate using the property + I will have to pay to fix any problems with the property. How can this be? This guy is trying to tell me I will get 10,000 worth of equity, and ownership for 700 + the responsibility for paying the remaining 55,000 mortgage on a 65,000 condo!! He is asking the 700 for himself, he is not in a position to sell now is he? He also stated that he has done a title search and the property came up clean of any liens. Anyway, I have biased the facts a bit, but in conclusion, can I do a contract where I pay a mortgage in another persons name but hold ownership to the house, will the equity belong to me in such a situation, and what possible pitfalls could I have overlooked in this situation.