need help structuring deal - Posted by Paul

Posted by Bill Gatten on January 31, 2000 at 16:50:18:

Two-party co-beneficiary short-term title-holding land trust (sigh). This is not a PACTRust™ deal, but it is definately a co-beneficiary land trust deal if I ever saw one.

Bill Gatten

need help structuring deal - Posted by Paul

Posted by Paul on January 30, 2000 at 23:16:46:

I got a call today from my I buy Houses ad. Guy says that he bought a foreclosure about 45 days ago for $33,750.00 at 7.75%. He has had a contractor estimate the repairs at $10,700. His intention was to buy and rehab, but he can’t find anyone to get him the rehab money, so he calls me to buy him out at $55,000. I tell him, NO WAY at that price, but I’m sure we can work something out!!. He had the property appraised 30 days ago and it came in at $72,000 as is, with market value around $82,000 repaired . The house 2 doors down sold for $82,500 40 days ago. The property is in an area that I usually wouldn’t even consider looking, but he is stuck, and this looks really inviting and I want to get it going NOW…

I told him that I could arrange to get the rehab money needed, and then we would put the property up for sale and split the profits.

I have the money, but would rather get it elsewhere. I talked to my favorite Broker the other day who told me that he would give me a second on a property up to 60%LTV so I figure I can get the needed money from him, quick.

I need to know how to structure this deal so that I am in control of this. His wife is on the loan and title with him. He liked my idea and said he will call me back tomorrow after he talks to his wife. Do I need to have him deed me interest in the property, or should I hook him up with my broker, or should I just offer him a cash purchase price and get him out of it completely? I do not want to go get new financing. His current loan is really good, so it makes sense to leave it in place.

Suggestions from the more experienced, PLEASE. Thanks