Posted by B.L.Renfrow on October 21, 2000 at 22:59:36:
Sure, he can quit-claim it to you, but you’d be wise to read up on subject-to deals and land trusts. This is a perfect situation for using those techniques, or the PACTrust.
In the case of a subject-to deal, you’d have the seller deed the property into a trust by executing either a warranty deed or a quit claim deed, then quietly transfer beneficial interest in the trust to you. The loan would stay in the seller’s name until you or your tenant/buyer either refinanced or paid it off.
If your numbers are correct, this is a deal I’d do in a second…and while I might not like it, I wouldn’t have a real problem with giving that seller $1000 to walk if he’s truly giving me almost $20k in equity. Heck, if you don’t want the deal, I’ll take it, from 1000 miles away.
Just verify your numbers, and keep in mind that an appraisal really doesn’t mean much. Check comps for similar properties to get a better idea of the FMV.
If you’re interested in the PACTrust concept, there’s a man in FL who works with Bill Gatten’s group which deals with those all day long. I believe his name is Marty Weisberg, or something similar (sorry if I screwed that up) and he posts here quite frequently.