Hello all!
After marketing for sellers I have quite a few highly motivated sellers lined up in the Volusia and Orange county part of Central Florida. After speaking with my Attorney I am saddened by what she told me and find it hard to believe this is common practice for real estate investors in the Florida market, the following is a run down of what my attorney told me and if you guys could chime in and say better alternatives that would be great. I have quite a few 50/50 deals lined up if any central florida investor wants to link arms.
Can I assign a contract to a seller for an assignment fee;
Attorney: "Yes, however on the FARBAR I must edit the contract and allow for assignments, each property I must check to see if the property is free and clear as you can not assign properties with existing mortgages in place. I must also input the address of the property each time you wish to tie up a house, this is a $350 cost for the purchase contract and a $75 cost for the assignment form."
This must be some sick joke.
Can I tie up a house that has an existing mortgage in place and use a Land Contract to cloud title to avoid a due-on-sale clause and then assign the contract to a buyer for a large premium down, which would include closing cost, relocation cost of seller and my profit?
Attorney: "Avoiding a due-on-sale clause is not possible in Florida, house must be free and clear in order to assign to an end buyer"
I have heard otherwise on BiggerPockets.
I have a house worth 120k ARV, my dads girlfriend is a certified appraisal and said its worth 120k ARV, However seller owes 45k on the house, seller wants out of the house ASAP. According to my attorney this is a dead deal and I can't do anything with it legally in Florida. I say otherwise! I refuse to believe my current Attorney and will continue to ask other attorneys in my area about wholesaling and seller financing. If theres an investor for Central Florida and wants to do 50/50 splits lets connect.
