All Forum Posts by: James Harkness

You should have the property under contract with the seller, in the A/B deal, and your contract with the buyer, in the B/C deal should have the proper legal verbage making the B/C contract contingent on A/B closing. I think you are being a little paranoid about the legality of it. Some title companies don't like to do these deals because they are afraid of straw buyers, etc. But if you properly disclose everything and all lenders/parties involved are aware of whats going on, it should be fine.

Terry, I too find time difficult to manage. Especially since I work a 9 to 6 job 5 (sometimes 6) days a week. It is often difficult to find enough time in the day to accomplish everything I want in Investing. I try to set goals for myself on a daily basis. I think that this makes it easier to get things done. If you set monthly goals, and time management is dificult for you, then you will likely get to the end of the month and not have accomplished much. Set small daily goals, and try to focus on the things that make you money. Maybe you need to find more buyers, or look for prospect properties, or research a market, etc. If you take one goal, and break it down into pieces, it is much more manageable.

The most you can afford on a monthly mortgage payment is 2400/month and still make $100/door. That would put you somewhere in the 350k to 400k purchase price

Sounds to me like an eviction would be pretty hairy in this situation. I think that you should take Jon's advice and just notify your tenant that you will not be renewing the lease for the month of November, and that he must be out on October 31st. Give him 30 days notice.

I understand, and thats what I thought was happening. I just wanted to make sure I wasn't missing something. This is definitely a good business practice, and something I have always believed in. If you do the right thing by everyone you work with, you will succeed in business. Word of mouth is a very powerful marketing tool.

"If the price remains too high, we wait until we get a buyer that makes an offer around where the bank wants and we "substitute" their contract for ours to get the house closed and help the owner avoid foreclosure."

Chris, maybe I am missing a step or misunderstanding, but how are you making money on this? How do you have it under contract if you haven't agreed on a sale price? And if you find a buyer to buy at what the bank is asking, where is the money in it for you? Thanks for all of the really great info in this post.

I would just get right to the point and tell them that you are looking for a title company to work closely with that is familiar and comfortable doing contract assignments, etc. And then ask them if that describes them.

I wonder what your opinions of allowing delinquent borrowers to change the terms of their mortgages are? To me, there is something fundamentally wrong with essentially rewarding lousy borrowers by extending their terms, lowering their interest rates, or sometimes even forgiving a portion of the debt completely. Especially when the good borrowers, who have always been on time with their payments are stuck in the original terms of their loans. What are your thoughts on how this will effect things in the future from an economic point of view?

What kind of BPO? BPOE or BPOI?

The bank is going to look at the sale contract. So if you are going to have a second lien, you won't be able to account for it in the contract especially if the second lien brings the total loan amount above 100 LTV based on the appraisal.