I've been hearing a lot about............ - Posted by Jim

Real Estate Investing
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Posted by Kate (VA) on February 02, 2001 at 09:02:27:

nt

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I’ve been hearing a lot about… - Posted by Jim

Posted by Jim on February 01, 2001 at 21:24:25:

Buying with a CFD!

I have been hopping around the web checking out different investor sites and it seems to me that a lot of suggestion is being focused on buying from sellers with a CFD.

Now I have been through the Le Grand series and he speaks a lot about buying “ALL CASH” (Wholesale / Retail) “SUBJECT TO” (Where sellers are behind on payments) “LEASE OPTIONS” (Where the sellers are reluctant to transfer title until paid off) yada, yada, yada.

Some of these other guys are saying to give the seller a CFD a lot of times over the Lease Option offer. Is this a better approach to get deals accepted, when sellers have equity?

I know Ron says to “SELL” with a CFD but he says we should buy either cash, subject to, lease option or option.

Although it is not unheard of for us to buy CFD, I’m just curious as to whether it has become a more popular way to go with investors?

All Suggestions and comments welcomed.

Thanks

Jim

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Re: what is CFD??? - Posted by Jeff in Ga

Posted by Jeff in Ga on February 02, 2001 at 07:57:40:

Rookie question.Please explain.

Thanks.

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Let Me Clarify Things a Bit … - Posted by Rick Wheat

Posted by Rick Wheat on February 02, 2001 at 06:57:19:

If you can get the seller to Deed the property to you “Subject-To”, then a Deed to Trustee is in order. If you can’t get them to convey the property to you and carry the financing, (they want to retain full ownership until the loan comes out of their name), then a Lease/Option is the tool to use.

BUT - if you can get the owner to convey the ownership to you, but they want to hold on to the TITLE until the financing is satisfied, a Contract/Agreement for Deed is the vehicle of choice. This gives you an ownership position (Equitable Title), but the seller retains the deed (Legal Title), until it’s paid off. Sorta like a car loan.

The reason some sellers would do this depends on where they are located. Some states (such as Georgia) allow a seller to recover possession of properties sold with CFD’s in an action much like a simple eviction - no judicial proceedings. Others, like Florida, require properties sold with CFD’s to be foreclosed on to recover possession, so it is just as easy to sell with a Wrap-Around Mortgage and actually convey the title.

Hope that clears things up a bit.

GOOD LUCK!!!

Rick Wheat
rick@rwcproperties.com