I am a serious newbie to the Real estate game. . I recently shook off the fear and made contact with a seller. He is a single man who received a “Notice of Default " a month ago.He owes the lender approx. 3 ;D :Dk the property is only three years old and he has about 30k in equity. He wants some of his equity, how much we cannot arrive at a figure. The loan is not assumeable. What is the easiest way to circumvent the"due on sale clause”. Should I be added as an additional insured on his policy, would a quit claim be of any help and lastly should I do a Land Trust.
If anyone has a copy of or language pertaining to any of the above I would truly appreciate your help.
I understand that I have a long way to go, but I have established some rapport with this gentleman and I’d hate to let this one get away.
Thanks Again
The first thing you need to learn is “what makes a deal a deal?” There are some factors that matter but the one that matters most and takes front and center billing is . . . PROFIT.
This deal of yours just don’t have no profit.
That $30k in equity is not potential pocket. Do you know what we call that $30 in my area?
“Seller’s closing costs” (easily 10%, by the way).
And since property values can dip 10% overnight, we don’t even count the top 20% of equity when we’re doing these kinds of deals. That means in your deal, you’d need a discount of at least $60k before we even looked at it.
Let’s say you’ve got a $33k property you can buy for $30k. Does that sound like much of a deal to you? Me neither! Multiplying it by 10 doesn’t somehow make it any better.
So, learn what makes a deal a deal as step #1 and you’ll be on the path. Until then, you’ll just be dangerous.
:Dk the property is only three years old and he has about 30k in equity. He wants some of his equity, how much we cannot arrive at a figure. The loan is not assumeable. What is the easiest way to circumvent the"due on sale clause”. Should I be added as an additional insured on his policy, would a quit claim be of any help and lastly should I do a Land Trust.