I got a deal to where I’m able to take property sub-3 (by taking over her payments). She is currently getting owner financing from someone else through an escrow company. Her contract with the person she is buying from states that she cannot sublet, rent or sell the property. So my question is, is there anyway I can still do this deal and get the deed and not raise any red flags with the prior owners and escrow company? She doesn’t want to give it back to him and wants me to takeover her payments. But I don’t want to be in this deal and in a year or two the person she is buying from gets wind of it and takes the house back.
Yea I’m sure he does… But what I’m wondering is how can I make this deal happen and not risk losing the house back to the original owner. Like I said before she is giving me the house but how do I structure the deal to where I can keep it and not risk losing it.
Thanks
My advice…do not put 1 penny into this property until you do your due diligence and that deed is in your name. What happens if you take over the payments and you or your renter has been paying for 1-2 years and the owner finds out? You will be SOL. Why don’t you work out a terms deal with the original owner? If your plan is to rent it out just tell him. If he doesn’t go for it move on to your next deal.
Come up with the money to finish paying off her loan. As long as she doesn’t have a pre-payment penalty, then you can do a double closing where she finishes her owner financed purchase with your money and then she turns around and deed’s her new property right over to you.
That is doable if you have a financial backer. Depending on your plans for the property and your exit strategy, this could work.
I am interested to see how you work this one, let us know.
Personally I never take on a seller financed property as you described, because most of these do have provisions in the contract about renting or selling. Rest assured the seller will call the loan due the minute they find out the property deed has been transferred, the property has been rented or their buyer is not residing in the property.
A Trust will not save you as once the seller checks on the property and their buyer is not residing in the property this will cause problems also, in this case the Trust hides nothing.
Your only option is to contact the original seller and see if you can work out something with them, if not just go on to the next deal.
Thanks $CASH$ I really appreciate it. That’s what I was thinking as well. You’re right There is no way to hide it if he decides to check. I was hoping you had another idea. Yep on to the next deal!!!