Newbie needs help with a deal

General Real Estate Investing
1

Want to make sure everything is legal and I can’t get screwed in the deal

I got a deal where the seller wants 42k for a house and 5200 down amortized over 7 years with 5pct interest I got an end buyer for 46k with 9200 down 5 pct int so I make 4k at closing and walk away is that right? And how can i protect myself so I make my 4k with no worries and no attachment to the property

Thanks for the help this sites articles and forums gave me the inspiration to start in real estate

I got another deal where I’m paying 13 k cash for a house where I’m selling for 35 k owner finance 7000 down with a note of 28k 10 yrs 10 pct int and selling the note to an investor at
closing for 20k so I make 14 k not bad for a newb I think in 30 days.

Thx to this site!!!

Just. Need help with the first deal and the legal side since I’m not licensed

2

Well first of all, your buyer needs to be making a check out to you. You will turn around and write the $5200 check to the seller. Then you will need to assign the contract to your buyer.

3

I’ve done hundreds of deals like this over the years…I would be cautious however in that you cannot sell something that you do not own.

My preference is to make the deal with the seller with an agreement to replace your contract with your higher priced contract for new buyer and have an invoice agreement for the difference paid to you buy current owner/seller.

In the event you have terms on your invoice, you can secure your position with a lien.

Hope this helps.

RC