Posted by life-is-great on September 17, 2003 at 22:04:38:
Mike,
I can’t agree with Mr. Bronchick more. I spoke to many mortgage brokers and they all tell me this can’t be done, and that’s not how it works. Well, that’s because they don’t know better. Some couldn’t answer questions faster than I asked and didn’t know, for lack of a better phrase, squat. Some never even heard of kinds of loans I asked for that are available for us investors, and worse they come up with their own theory to cover up ignorance, or scared you off by saying those loans would cost 6 or 7 points…many phone calls later I luckily found one that knows exactly what I was talking about. People don’t know what it is that they don’t know, professionals included. Most those costs you mentioned are all negotiable with seller, especially in seller financing case, although different state might have rules regarding what’s the max seller can pay.
Look forward to Mr. Bronchick’s radio session tomorrow.
I have read William Bronchicks Flipping Properties book, and came across the Double-Closing examples on how to do it without going to the table without any money. When I spoke to my lawyer and explained what I wanted to do he told me I needed to come to the table with the contractual amount I was paying for the house, then I would flip it to the next buyer.
The home is a flip and I would be making $20,000 on it. That money would quickly shrink once I pay a mortgage tax, title insurance and the rest of the bank and closing fees.
Can anyone tell me exactly how to structure such a deal?
My last option may be to assign the contract. Contrary to many articles, it is very rarely done in NY because the sellers attorney feels that it postpones the closing, since the potential ‘real’ buyer needs to be found by the investor assigning the contract.
I have a simple answer whenever someone says “my attorney says…” The answer is, “find another attorney who will do it your way.” The same goes for, “my boker says, my banker says, my title company says.”
Investors represent less than 1% of the transactions out there, so most attorneys, banks, brokers, title companies and the like aren’t familiar with the way we do things. My recommendation is fine a team of professionals that deal regularly with investors and STICK WITH THEM. It will make your investing life a whole lot easier!