Anyone here recommend or have “bought” properties subject to the existing mortgage remaining in place?
I am looking to do this with properties in distress (ie. pre-foreclosure / foreclosure)
I’d like to do my first couple of deals “and/or assigns” get the property note performing again (backpayments, attorney fees and such) and current - using the existing mortage in place. Then I would like to assign the contract to another investor. I have databased 2 that buy properties for handsome assignment fees.
Anyone done this before? Give some advice as to pro’s and con’s and what about contract writing - thats seems to me to be the most frightening thing.
Thanks in advance,
Also, as far as the due on sale clause - if anyone decides to throw that one in - what about a power of attorney to allow the payments to be sent in to the mortgage company - so they don’t call the note fully due or what about setting up a promissary note and negotiating some time to flip it?
I’ve been doing research
FYI: I am a Robert Allen graduate recently
I am a wholesaler and always assign my contracts to my rehabber who makes up the back payments, pays the seller money, pays my assignment fee, and then makes payments on the loan, rehabs and then refinances and then sells.
works all the time, and less cash for rehabber up front.
Im not sure how its done on paper but the title company we use set us up. My fee is paid up front at closing and I don’t even have to show up
So basically you have found a re-habber in advance before you can negotiate terms?
Thanks for the reply.
Also, from what source do you usually find these properties?
Thanks in advance. ;D
I have a buyers list of rehabbers ready to buy from me. Some like to work that way. I chase preforclosures
You should also chase - recent eviction notices of rental properties and also estate heirs.
I was recently so focused on foreclosure, foreclosure foreclosure and then someone opened my eyes to frustrated landlords and estate heirs. 8)
Do you have a good list broker for that? I would be happy to take a breather from F/C’s and focus on others…
Thanks for the response
No, very new investor here - but think about those two - in conjunction to preforeclosure.
The Goddess of Real Estate Investing openend my eyes to these ventures.
so you havent gone after the eviction notices or heirs yourself?
No, I have not done any deals yet - but I am currently learning what to look for. I just got into this investing 2 weeks ago as I am a Robert Allen Graduate.
you said you started 2 weeks ago and you have been focused on foreclosures foreclosures foreclosures?
Must have been a long 2 weeks ha? ;D