Posted by Soraya on May 09, 2000 at 12:06:00:
We buy property in San Diego all the time doing just like these investors have offered you.
However, if I were the seller instead of the buyer I would do the following:
1- Get a credit check on the investor. If the investor is a corporation, they may or may not be listed with Dun & Bradstreet, (if they are listed check their credit rating with Dun & Bradstreet). Also check with the Secretary of State in the state that the company was incorporation to make sure they are in good standing.
2- Sell your property to them on a “wrap-a-round loan” even if you have a $1 seller carryback loan that wraps around your bank loan or sell to them on a land installment contract.
3- Set up an Escrow collection account where a third party collects their payment and makes the loan payment to your bank for them. The third party collection agency will let you know if they are late with their payment. Have them make a payment to the collection agency one month in advance so if they are late it will not affect your credit rating. (You will have nearly 30 days advance notice that they are not making their payments on time.) You could have a hefty late payment charge.
4- Have YOUR attorney draw up the contract to make sure you are protected.