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 :smiley: :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

Kenny Bentley


How serious?

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.

Joe Kaiser