So I am ready to start investing in some real estate, and since my credit is horrible, I have decided to take a credit partnet in obtaining the financing. My question is this, do I just put the properties in his name, since he is the only one that can qualify? how do i protect myself? also do i just apply for the financing under his name and tell him when we close? thats all he wants to do, he wants no involvment. any help is apperciated. thanks
Isn’t this mortgage fraud (straw buying)?
it is straw buying when the person obtaining the mortgage lies and says it is owner occ and it is not, or the purchaser is buying at an inflated price in order to obtain cash back and then allow then loan to defult. However buying an investment property using your credit and allowing someone else to do everything else such as flipping it or renting it and managing it or whatever the investment strategy may be is in no way straw buying. Hopefully someone that knows what they are talking about will reply with something useful.
Dzy,
I believe that MW was just asking you a question. As a new member here at reiclub it would serve you well to treat others with a little more respect. To answer your question though… to protect yourself you could draw up a warranty deed prior to closing and have your partner sign PRIOR to closing. Once the deal is closed and recorded you would take the warranty deed to the county clerk and file it. This would add you to the title. Once you are on title you technically own whatever percentage of the property that the warranty deed specified.
I was under the impression straw buying entailed more than you pointed out. Many ads I see for “credit partners” are basically looking to do just that…but since you have all the answers, I’m surprised you are even on here at all asking any question. Something “useful” would be to take care of your credit so you are not in this predicament to begin with.
touche