Posted by Scott Britton on November 30, 1999 at 21:52:08:
Terence,
Assuming you and the Seller are happy with the transaction… you need to figure out a way to secure your position. In a deal like this… where you are going to put your hard earned dollars into improving property you don’t own… and worse yet… property that is financed for more than your purchase price… you want to insure that the Seller will do what they say they are going to do.
The best way to secure this… is by using additional collateral. I would probably try for a mortgage on the Seller’s primary residence to secure my position… assuming that there is equity there. You could also use other real estate or personal property. Obviously… you’d want to insist upon a promissory note and security instrument to perfect your position.
Best of Real Etate Success!
Scott Britton