All Forum Posts by: Jonathan C.

Hi BP members, 

I am working on my first flip deal and need some help on properly structuring the deal - especially the trust deed.

I have a private lender (a family friend) who will finance/fund the whole deal - purchase price + rehab cost etc., fixed interest 12% and no payment for first six months, repay when property is sold within the year.  I am thinking going the promissory note and trust deed route. 

My question is on the power of sale part - we both agreed that in event that I cannot repay the loan, I would give up the property and he can gain full control without having to foreclose. What is the proper way? to include this in the deed? Or I can just instruct the title company to transfer the title to my lender? how does that works? 

The part I am concerned about - which I think is also the owner's BIGGEST concern is putting a stranger on the title. To us investors it may sound simple just being a half owner on record just to have an avenue to do improvement on the property BUT to the elderly owner, it will be very hard to explain (be it seller financing or title holding trust) and convince her because she will most likely see it as "losing" half of her interest in the property. Unless she get paid cash upfront for half equity of the property, I really doubt she will be willing to go into any kind of arrangement having someone else on the title. 

Perhaps like what Bill says about a contractor's build contract - is it possible for me to find a  licensed contractor to be under contract with her with these terms and then I have an agreement with the contractor on the side?? Will that work?

How about a Power of Attorney or some sort of an agreement that will legally allow me to come in and help her improve the property without any changes to the title? 

Thanks again for all the valuable comments.

@Bill Gulley

Hi Fellow BP members,

There is this property for sale (4000sqft on a 0.6acre lot) that the owner (an elderly woman) inherited free and clear. It needs a lot of work to be done - probably a 100-150k rehab work which she couldn't afford/manage. Similar property on the street sold for 700k last year and the neighbor is a million dollar property.

I'm thinking of approaching the owner for a JV where I will fund the rehab and then she can sell the property and we share the difference between her asking price and the final selling price after rehab.

What is the best way to structure this deal so that both party's interests are protected.

Any advice?

@Bill Gulley

Hi @Bill Gulley ,

Thanks again!! Will find out the lien status and redemption period at the County's office tomorrow.

@Bill Gulley

 Hi Bill

Hello BP members, newbie in REI needs help and advice....

I was driving for $$ and came across this boarded up vacant property. 

Start to lookup the address and found out that it was foreclosed 2 years ago for several thousand $$ and will be auctioned at a county treasurer trustee auction because of 3 years past due property tax.

The county's record shows the deed recorded from the owner to the county 2 years ago, 3 minor liens by the waste disposal company and then there is no more record. 

My questions

1- how do I find out if there is a mortgage/1st lien/bank involved on the property? Do I do a title search or there are other ways to find out from the public record?

2- Am I right to assume that even if I win the bid at this auction, the mortgage/lien not showing up on the county's record will still exist? OR they are all wiped out and I will have a clean title from the county? 

Thanks!!