All Forum Posts by: Eric Lawson

 Oh OK I had heard that term before but didn't fully understand it. Thank you. 

What if there was a 2nd lien on the house? I'm assuming the borrower would only do a deed in lieu of foreclosure if it meant purging all debt on the house. What are the strategies for that? I'm guessing either just completely paying off the 2nd lien if it's cheap enough or maybe working out some sort of deal with the lien holder? Are there any other options? 

Hi all, 

Here's a highly simplified hypothetical situation. Let's say I buy a 1st NPN for 20k with an UPB of 100k and it's the only lien on the house. What's stopping me from forgiving the debt and paying the owner say 5k for the title, then turning around and selling that home for it's ARV? I haven't heard anybody mention this strategy but it seems like a much better option than foreclosing. Is this a realistic strategy or is there something I'm missing?

Good looking out Patrick! Thank you. That's exactly what I was looking for. 

Hi all,

I see a lot of people who focus on either 1st or 2nd NPNs, but rarely both. What are the big differences between 1st and 2nd NPNs (other than lien position)? Do 2nd NPN investors just not want to deal with the property if it forecloses? Or is it cause it's cheaper? Or something else that I'm missing? Thanks for any help.

Ah that makes sense. Thank you!

Hey everybody,

If you are wholesaling a property via double-close and you go through with the A to B transaction, what happens if the B to C transaction falls through? From my understanding I technically own the house after the A to B transaction. Is it as simple as adding a clause in the A to B contract allowing me, say 24 hours or so before the sale is final to make sure the B to C transaction goes through? Any help is appreciated. 

I just finished watching John Fedro's video (https://www.youtube.com/watch?v=pz7Onln5fNo) on MH Investing and I am a little confused as to how the payments work. If I purchase a MH with a note as he discusses in the video, then I am assuming the MH is held as collateral. But once I turn around and sell that MH via note to the end buyer, what happens to the original note to the seller? Is the MH still considered collateral? If for some reason I, as the investor stop paying the seller after I've already sold the home to the end buyer via note, what happens? 

Note: I do not ever intend to be in this situation, but I would like to be able to explain to the seller how the process works. 

@Griffin Fehrs Thank you for the quick response. That answers my question.

I am trying to get my foot into wholesaling real estate and I have a question about the obligations you incur as the buyer in a  purchase agreement. My intent would be to immediately turn around and assign that contract to a cash buyer, but if for whatever reason I can't find an interested assignee am I still obligated to purchase the estate? I haven't heard anybody talk about this scenario. What are my exact obligations as the buyer in a purchase agreement for an estate? Any clarification on this matter would be greatly appreciated.