Regular title checks on Sandwich L/O

[aaronj231 0]

Hi Guys,

 

It's been a long time since I've posted on the board. I purchased the manual about a year ago and since

then I have been busy I have 5 active sandwich lease options and have done numerous assigments

The cashflow from my sandwich l/O's is now enough that it pays almost all my familys living expenses

each month, not to mention the $100,000's or so I take in for consideration, so thanks MC!

 

With the sandwich lease options I was just wondering if anyone checks title on a regular basis

like every 3 or 6 months just to make sure nothing ugly has popped up like bankruptcy or unpaid

taxes etc? Up here in Alberta Canada it only costs $5.00 each time to check title so I was thinking

about doing it every once in awhile. Any other thoughts how to protect myself from the seller

not paying the taxes, putting into forclosure etc?

[jhanson8 0]

One suggestion is to make the payments to the bank yourself, rather than trusting the seller to do it. That way you have more control and you're sure the payment is being made. It's pretty easy to change the mailing address for the statement, and the bank doesn't care who's making the payment so long as it's for the amount owed. If the seller won't agree to that, then I think your method is the next best option.

[MichaelC 160]

Hi, Aaron. Good to hear from you. I had no idea you were doing so well up in God's country. I guess I should have charged you more for my manual.

Anyway, you can't protect yourself 100%, but you can minimize any problems by doing what jhanson said as far as not counting on the homeowner to make their payment. If they're not willing to let make the payment, then you can meet in the middle and have an escrow company make the payment. You pay them, and they distribute the funds according to the instructions you've issued.

Also, file a Memorandum of Option to cloud the title when you are in the deal long term, such as a sandwich lease.

Finally, for only $5 to run a title search, I'd say that's a great deal to run a check every six months or so.

[<Steve> 82]

Congrats Aaron, sounds like you've had a good year. Nice to see someone else doing SLOs.

[aaronj231 0]

Congrats Aaron, sounds like you've had a good year. Nice to see someone else doing SLOs.

 

Thanks MC and others. Steve, How are you making out with your SLO's? It's been a little tough

this year with vacancies and also hard to find T/B's but things seem to be coming around

this year where I am at anyways