Posted by Eva on July 08, 2002 at 20:19:52:
$600 in San Diego?? I guess my first question is why does he need help for a mortgage that is only $600? To top it off in San Diego. I lived there a long time and know the area well. $600!! Amazing. Can you share the details? Are you interested in investing money for a profit? Or are you interested in real estate deals? If you do go through with this have it reviewed by someone you trust. If your friend can’t handle this low sum of money perhaps there are other factors he is not mentioning.
Need HELP - Posted by Obi (San Diego)
Posted by Obi (San Diego) on July 08, 2002 at 20:08:15:
I was approach by a friend if I can help him with his monthly mortgage payments and in return he will let me have a third of his equity when he sells the house in 2-3 years from now. The payment is only 600/mo. It is a new house in a master-planned community. The homes is this area are appreciating at a very high rate. I’m interested but I need to know what can I do to protect myself. My name won’t be on the loan. Is it possible to have my name on the deed if I’m not on the loan of a brand new house? Is there some kind of contract that will show my equity share? Any input would be appreciated.
Re: Need HELP - Posted by varinia
Posted by varinia on July 09, 2002 at 06:45:56:
as the other poster wrote, if your friend can’t handle $ 600 now, what would happen if he stopped paying completely? you either wouldn’t find out and the house might be lost and you’d lose your investment. or you would know and then had to make the decision, do you want to take over the whole payment to ensure your investment or watch it all go down. you owuldn’t have any controll. what if your friend decides not to sell in 2-3 years? what if he starts renting it? what if he puts is on the market at an unrealistic figure? what if good offers come in, but he won’t accept, because he wants more. you have no controll. i would say don’t look at this as real estate investing, but as a way to help a friend. so you would have to decide whether this is a good enough friend to do this for longterm
with a chance to possibly lose the funds, if your friend couldn’t pay his mortgage.if you do decide to do it, make sure, that you have a contract, that allows you to foreclose in some way, if your friend doesn’t pay the mortgage (be prepared, that your friendship may end at that time)