Best way to help someone stay out of foreclosure

Bird Dogs, Wholesaling
1

I have female friend having problem paying mortgage

she wold like someone (me) to buy property and allow her to live there
at the reduced rate of the mortgage I would get since my credit is A1

Is there a formula I could use to determine if this is of any benefit to me
I am a new investor
1 property for year now it’s few hundred positive

I am looking to get more into REI wholesaling,pre foreclosure, rehabbing still looking for my niche or a little of all

:help :help :help don’t want this deal to hinder me in the future and also not sure what exit strategy I would use here

I would want some of the equity and also want some to pay mortgage
off for year or so

Any of this make sense and can anybody advise

thanks in advance
:help

2

First rule of preforeclosure investing is to never let the seller stay in the property. Violate this rule and you will most likely get burned.

You need to evaluate it as a regular deal, is there enough equity in it to resell the property? Can you wholesale it? You could probably get an option on the house and then try to find a buyer and collect a fee that way, assuming the numbers work of course.

3

Thanks

so your saying it’s best to get her out friend or not

4

What happens if she could not pay you in couple of months? are you going to evict her? she could not make the payments on her current mortgage, what assurances do you have that she will be consistently pay you.

5

excuse my greenness
but I would take out the equity
assuming there’s alot and setup some type of escrow/auto payment

trying to help and also do a deal and make a buck or 2
I do know I need an exit strategy

6

I know you want to help, but you also have to look at it from your own selfish standpoint.
If she is having trouble paying the bank now, what makes you think she will be able to pay you? If you are taking out equity, how will your payments be lower than what she currently owes? And how could you make the property cash flow without the payments being higher?

And what will stop her from taking advantage of your friendship to be late with payments, or coming to you with never ending stories of how she will ’ have the payment soon, next month will be better’… blah blah.

If she can’t keep up with payments, are you willing to evict? It’s usually best to not do business with friends.

7

Fadiz and Lori k

Thanks

8

Like one of the other posters in here says, “Never do business with someone that you are no prepared to sue, if necessary”.

I wouldn’t rent/lease to friends or relatives…no good can come from it.

Keith