I would like to know if anyone on this board has come in contact with the John Alexander Inverse Purchase System. This is how it works
system is this:
Locate a FSBO
Negotiate a deal with the seller.
sign contract including clauses that allow you to show the house. Also have seller sign investor’s disclosure notice.(states how you are going to make your money between what you buy the house at and for what you sell it at.)
Show the house 2x per week for 2 weeks
Take mini cred apps from sub prime buyers
Send them to your sub-prime mort broker
Get one under contract (the one most qualified to buy house) for full Appraised value
8.) Send seller an invoice that the seller signs agreeing to pay investor the diff between his purchase and the appraised value and works as a contract release.
Fax seller copy of investor’s contract with end-buyer
End buyer and seller go to close.
Title company or closing agent sends you a check.
Now if equitable title vests in the purchaser then isn’t this the person who is now recognized in equity as “owner of the property”, because real and beneficial use belongs to him and the original owner retains only the legal title? And isn’t this why the seller usually retains one of the beneficial rights in a regular sales contract, which is the right to “possession.” Until closing and funding have occurred? And isn’t it true that the right to a “profit” is never refused by the seller in most contracts and therein your ability to resale the property for a profit?
On your #8, You mean the you ask for the difference between the sellers “sale price” and the appraised value, right? Not his “purchase” price and the appraised value…
should be the differences between the price you buy it form the sell and the price you sell to the end user. ie buy for 90k sell for 100k you make 10k …but the price you sell at has to be the FMV price. You could not mark the house like 10k more than what it would appraise for.
Sounds like you are towing the line of being a broker in the deal. There is probably enough legalize to say you aren’t, but it only takes one disgruntled buyer to raise a flag.
The sales contract or agreement, lease or option, or rental of real estate by an unlicensed owner of real estate who owns any interest in the real estate if the interest being sold, leased, or rented is identical to the owner’s legal interest" If a person signs a sales agreement then he/she has a type of equity ownership according to blacks law dictionary it is a form of doctoring that allows or grants a person the intended purchaser the right to hold a part of the realty in which you have bargained as a position in equity same as a realtor when they bargain or establish the commission structure however possession by true simple fee interest must be met by state conveyance laws the possession stops you from taking possession until a true passing of clear title occurs. The power of sale has been established on paper whereas you are now going to sell your equity for cash to someone. You have an established right of claim when all parties have signed your contract if this is the case then you have a legal contract your considered by your binding rights as an equity owner then you are backed by the state. Your a part owner but not owner in fact sense the majority of equity shares favor the sellers this is called fee simple ownership in many cases unless the property is owned outright with a clear title then ownership is considered a true owner of record. Then you have the right to sell market our investment property while you’re under contract.