FINDING FSBO whats your method??????

General Real Estate Investing
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Hi instead of creating newer threads I will use this one for all my questions<<<

So how do you guys find your For Sale by OWNER properties and L/O’s? I am looking in the news papers where else should i begin to look…?

Please note I have revised question so some stuff below may not make since if you didnt read the original question…<<

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The seller still owns the property so they have more control. It doesn’t mean it can’t be a good way for you to buy, but you could also try to get the seller to carry back financing instead. That way you own the property but they are financing instead of the bank. You have more control.

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but you could also try to get the seller to carry back financing instead.

what does this mean? I am not aware of it… can you explain just a bit or give me link to an article that will

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Jay, using options to control property is smart and creative real estate. But keep in mind that until you actually exercise that option, you are not on title. Not that that is a bad thing, but be advised you are not yet the owner. Some might argue that is a big disadvantage, but I don’t see it that way.
On the other hand, I think most would agree that options and lease options are a very low risk way to invest, and don’t require you to come out of pocket to do the deal. So that $40K that’s sitting in your mattress can stay where it belongs. :cool

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Thanks Guys… I think I will try to go the L/O route.

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one way you could mitigate the risk is to have a signed deed held in escrow with dual instruction that it be recorded if and when you exercise your option as per the option agreement. this way, the seller can’t back off later.

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The seller is in foreclosure and you want to do a lease/option??? How much will it take to reinstate the loan? What is he asking for upfront Option money? In general buying a lease/option while the seller is in financial trouble is as good as burning your money in the fireplace! If you can get a good deal, buy subject to, reinstate the mortgage and sell it on a lease/option to an end buyer. At least that’s why I would do…

:bobble

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Thanks Iceberg and Jason…

So Jason If I reinstate the loan am I picking up where the owner left off? and what is usually involved in doing so?

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Yes, you would be taking over the existing loans, which would include any past due interest and possible fees to reinstate the mortgage. If this seller takes a lease option there is no guarantee he will own the home when you want to excercise your option to purchase. The best thing to do when buying pre-foreclosure is to buy it subject to, you don’t need to actually close, you just need the contract below market enough to wholesale it (flip the contract) to another investor for a finders fee. Unless you have the money to take over the loans yourself and close the deal, then you could just buy the property. Does that make sense?

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i see

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With owner financing the owner will hold the note the same way a bank holds a note for a mortgage. The property would be transferred to the buyer just like with a traditional mortgage. The owner would hold the note and could foreclose if the note isn’t paid according to the payment schedule. The note would be recorded at the county courthouse.

So this is very different from a lease option. With a lease option, ownership is not transferred until the option is exercised. The lease option is just a “right to buy at a certain price”, with owner financing, you actually buy the property. Owner financing can be nice because it may be easier to get approved than going through a bank.

I hope this is helpful to you. Please let me know if you need further clarification.

Jeff

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Thanks LP… Very clear now

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bump…