Unrecorded 2nd - Posted by BJ

Posted by Ed Copp (OH) on October 23, 2003 at 20:15:21:

Bringing buyer and seller together for a fee (in this case half of the profit) is real estate brokering and usually requires a license, for him not you.

Let’s see a second mortgage that has no interest rate because nobody is going to collect on it, will not be recorded because of …see above. Smells like some kind of deception to me. On the surface it looks like loan fraud. 10-20 I doubt it, they just do not have room for you. $10,000 fine or some kind of judgement, might be a little more likely.

Unrecorded 2nd - Posted by BJ

Posted by BJ on October 23, 2003 at 18:39:51:

I have a property and have been handed over a buyer from another investor who he and I agreed on a price. However his buyer put in a contract for higher than we agreed and this investor wants to split anything above our agreed on price. Sounds good to me, so far!?!

The contract shows an owner carry 2nd. I inquire wanting to know what interest rate the note will be and the investor replies that it will be unrecorded and never collected on and that it was just to meet lender requirements?!?!

What the?

I’m a little uncertain about this. Would this land me 10 to 20?


Re: Unrecorded 2nd - Posted by Brent_IL

Posted by Brent_IL on October 26, 2003 at 01:06:36:

Why not option the house to the investor for your agreed price. Double close. He can do whatever he wants with his buyer and you’ll stay out of it. If seasoning is a problem, use a cancellation fee arrangement to pay the investor. The appraisal will have to hold up, regardless.