cash buyer to seller financing?

Question

im not sure on how owner financing works.

in order to seller finance do you have to own the property outright? no mortgage can be left?

so if i wanted to purchase a property and then seller finance it back the next week does that mean i would need all cash to purchase the home? meaning i would need someone who is wealthy and wouldnt mind a ROI on something like that?  (what is typical ROI?)

example :  this guys credit is hurt. he needs to sell the house to get his wifes name off the mortgage but he cant because of a business problem which is all resolved now.  he wants to sell the house but he still wants to live in the house.

my solution

i buy the house. and give him first right of refusal for a year or two while he pays rent in that time frame until he can take out a loan and buy the house back.

the problem

i get my money from a lender who wouldnt do something like that because they only lend for rehab purposes

Mike Hurney · Answer

@Gary Wilson

"he missed some payments because of a business that was going down hill"

If he did that to a Bank he'll think nothing of doing worse to you! IMHO

Next Deal...

Brian Gibbons · Answer

You have to be careful about buy back or sale then lease back issues, FBI and Attorney General's Office do not like them, there have been many fraudulent cases with sale lease backs.

See

http://ag.nv.gov/About/Criminal_Justice/Mortgage_F...

Find him another house to "rent" , help him with his credit,

See www.UpGrageMyCredit.com

get into a savings program,

then maybe in a year get an option to buy that rental property.

Account Closed · Answer

Bill Gulley

if i bought the house cash how would that not take their name off the mortgage?  i meant he needs to get her name off mortgage in two weeks, not title. she is already off title

Brian Gibbons · Answer

Thx Bill Gulley I appreciate your detail on that post

Account Closed · Answer

Bill Gulley

he missed some payments because of a business that was going down hill but now that is all finished. during that time i guess it ruined his wifes credit and now she wants off. she already signed a quitclaim deed but she is still on mortgage. apparently if he doesnt figure a way to get her off title in two weeks he is going to jail for a few months

Bill Gulley · Answer

Yes, just buy it, go to a title company and close, he just needs to sell and pay off the mortgage. Or, make him a loan, a new mortgage, he can pay you. Do an option for later on, convert the loan payoff to your purchase later on. You'd have the control of a lender, not ownership, interest income, not rents and no issue with lease back arrangements. :)

Bill Gulley · Answer

Then it's not the title she needs off of, it's the mortgage and the only way to do that is to pay the mortgage off. Just because she is off the title doesn't mean she's off the loan. No idea why he's be in jail in 2 years, from the mortgage as most cases there wouldn't be 2 years......regardless, the lender would have to agree to take her off, which won't really happen without a court order or it needs to be paid off. Seller financing is not an option, in fact, that can accelerate the matter if the lender finds out the property was sold.

They need to see their attorney. Looks like a conventional sale on this one. :)

Bill Gulley · Answer

You act unethical when you know all the facts and or know enough that you manipulate some predatory transaction which you may not see as being unethical or predatory.

You aren't the one to judge if your actions are proper if something goes wrong, a judge does that. So if you can think closely to what a judge will think, you might be good to go.

Why does he want his wife off the title?

Again, not for the investor to say what  is "for good reason" what will the judge say?

Sounds like he's messing over the wife, if it's a divorce, a decree will fix that.

She can simply do a quit claim deed to him and she can be off title, has nothing to do with you, there is no convoluted whiz bang deal about it, if you make it one and get involved, changes are good that you will be seen in predatory type issues. You have nothing to do with a H&W being in title and taking either off isn't a profit making venture.

Seems you're trying to finagle some benefit out of something that an investor has no business getting into unless you're an attorney, which you aren't :)

In other words, there is no deal here, unless the guy will sell and move out. :)

Brian Gibbons · Answer

Dont want to argue with you.

@Bill G. might want to post.

Account Closed · Answer

@Brian Gibbons

he doesnt want to move because of other issues with his family. he had some valid reasons as to why.

its only unethical if i make it unethical though right? just like anything else?  the sale lease back isnt illegal its just when i try screwing them

cash buyer to seller financing?

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