hello everyone, well anyway i'm a new investor and after some research i decided to focus on pre-foreclosures.well anyway i was told of a strategy that i could use that didn't involve the use of any of my money or credit and will allow me to actually retail these properties to end-buyers and not just wholesale them for a small profit to other investors, it sort of goes like this.1- locate and market to the people in pre-foreclosure, 2- once they contact me setup an appointment with them, 3- setup a land trust with them ( which they will be the beneficiaries and either me or a disinterested party the trustee)and have them sign a "warranty deed to trustee" doc which i will record at the my local court house, 4- also have them sign over there beneficiary interest to you which you'll store away for protection of problems that might come up in the future 5- start marketing the property as well as working on the short sale with there lender, 6- once i have my end-buyer (and hopefully my short sale is accepted in time) have my title company perform a double closing to pay off the first lender as well as myself, and to give the end-buyer clear title without any seasoning issues coming up (which i was told there has to be two separate HUD's, two separate escrow accts and etc)so my questions are: do i have all the steps down correctly or am i missing something?

Until they own the property it is not theirs to sell.If the person can not think clearly then they can not legally sign documents.

Most of them have signed off...but not all.Talking with the attorney that is handling the estate he informs me that I'm going to have to spend some money with another lawyer on "an action to clear cloud" (whatever that means) to get a clear warranty deed.But I figure even if it runs me 5K to get a clear warranty deed it's still well worth it.Once I am SURE that I can get a clear warranty deed I'm going to buy the property, and I'm going to see if I can find an investor that's willing to buy it from me with my intentions of making a quick $10K.If that doesn't happen then I'm going to start rehabbing it.

Thanks for clearing up the 50% and 2% rules REI.

Legally implies that the two of you clearly declare your position and that you do not misstate things to hide what is going on.Assuming you can not drop your price and she can not pay more then you have to bridge the gap with financing.

Clearly, he messed up with these deals.

I will craft the language to say that within each monthly payment there is a contribution to the equity of the property.If I am representing a Seller/Lessor I want to craft this transaction to make it clear that the tenant is not getting equity in the property== it will make it easier to evict the tenant.

Check with the county clear about the exact time lines, since these are different in different places.

I plan to wholesale real estate and am trying to clear up some issues.

Someone should clearly how something works and evaluate the pros and cons of doing so… land trusts or anything else.And yes… they should go see an attorney!