All Forum Posts by: Benjamin Cowles

Yeah, so what ever happened with this?

Can you use an escrow account to hold a JV agreement with instructions to transfer the seller's property deed at the end of a contract for sale in a 'JV with seller' scenario?

I'm trying to make sure I understand how this process works especially from the seller's POV.

And I didn't read about escrow being used this way but I thought it would be helpful if a seller might feel insecure with just a copy of a JV agreement from some investor taking control of their property perhaps in another state. Or am I missing something?

 Thanks. 

Thanks Dion. I forgot to specify. I was thinking between "interest only" payments vs "principle only". In your scenario where the HML will defer interest to the backside, wouldn't he earn more deferring principle to the backside (interest only payments) instead of interest, leaving the principle balance in place to accrue more interest while still allowing the investor time to hold onto their money?

Maybe I thinking too much into as you suggested. But if I were lending short term, if I wasn't going to offer to no payments till the balloon date and wanted to incentivize the borrower to get my money back I'd implement interest only payments, giving them smaller payments but also compensating myself over time for the loan. And am I correct assuming as a borrower you'd opt for anything between no payments to principle only? Thanks

I'm just trying to think from the seller's POV and am trying to eliminate all road blocks. Wouldn't it be a good idea to be prepared to at least put down enough to cover a potential foreclosure?

And beyond a substantial down payment and a mortgage/lien on the property, can a seller feel safe that they'll get paid their portion of the sales proceeds?

Suppose the seller is out of town or state and they a JV agreement, a piece of paper and the investor pays off the mortgage/DOT but they delay or appear not to intend to pay the seller their share of the profits from the JV agreement.

Can the JV agreement be put into the escrow instructions for the sale of the property and if so how can the seller be assured of this after they've let go of the property after selling to the investor? Have it in the agreement that the escrow used in the seller to investor be used also in the investor to end buyer sale?

 Hey Evan. Thanks for your input in this thread. I'm confused about the above statement tho. Doesn't the "payoff" come from the investor paying off the seller for the note rather than the "former owner" or seller as you state here? Thanks

Is it as simple as as the borrower (obviously) you'd negotiate for interest later and as the note/mortgage holder the converse, interest first? Or is there more to these types of terms?

I've read that in a trust, (ir)revocable it's usually those designated to 'benefit' by receiving the assets in the trust created by the "grantor" but that in a land trust it is the the grantor,  or the lender in a deed of trust who is the "beneficiary" rather than those that benefit by ending up with asset the trust was intended to impart the ownership of unto like in a regular trust. Seems a little inconsistent no? Is there any more sense to make of this or is this just how the terms came to be?

 Thanks Brian. Hey, I saw in another thread where you mentioned you used notecollection.com to service rent payments between TB's and seller's banks. Around how much does that run if not a flat rate or %? Thanks again for all your contributions. Been reading a lot of your posts

 Thanks Robert