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SteveG_Pa

Little help structuring this?

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Got a property under option contract for $1500. Found a buyer for 5k, he gave me $1500 deposit yesterday. Plans on paying it off in 2 installments, $2500 on Dec 5th, and 1k on Jan 5th. Hes a landlord using his rents to pay it.

 

Heres the problem, my option runs out on Dec 5th. I was wondering how I could structure this so the seller can QC to my buyer, and I still get paid the remaining 1k owed to me.

 

The seller and I talked and agreed I would pay him out of the $2500 I get on Dec 5th, then QC to my buyer. After that I need something to make sure I get paid the remaining 1k, or the property reverts back to me with no refund for monies paid or work already done on the property. At this moment, the buyer and I havent signed anything so what can I write up that protects my 1k after he gets the deed, plus, the payment on Dec 5th? I know this isnt the ideal way to do it but, I had to pay rent lol, and this should take care of that for a couple months if it works out. Thanks..

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Not sure if I am totaly getting this, but can you extend the option with the seller until Jan. 5th and not QC the property to the buyer untils he pays infull by that time? Meanwhile the property is off the market. If you agree to pay the seller out of your $2,500. can you negociate extending the option period in return?

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Sorry Steve, should have clarified, the seller wants it out of his name asap. He agreed to extend it 8 days from Nov 27th to the 5th, but thats it. I was going to just use a promissory note but not sure how to word it that I get the property back if he doesnt pay me, and hell already have the deed in his name. Maybe Ill just get it QC to me, then to him when paid in full. IDK.. But hell be paying the recording fees for both if I do that, trying to brainstorm here lol.

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Got a property under option contract for $1500. Found a buyer for 5k, he gave me $1500 deposit yesterday. Plans on paying it off in 2 installments, $2500 on Dec 5th, and 1k on Jan 5th. Hes a landlord using his rents to pay it.

 

Heres the problem, my option runs out on Dec 5th. I was wondering how I could structure this so the seller can QC to my buyer, and I still get paid the remaining 1k owed to me.

 

The seller and I talked and agreed I would pay him out of the $2500 I get on Dec 5th, then QC to my buyer. After that I need something to make sure I get paid the remaining 1k, or the property reverts back to me with no refund for monies paid or work already done on the property. At this moment, the buyer and I havent signed anything so what can I write up that protects my 1k after he gets the deed, plus, the payment on Dec 5th? I know this isnt the ideal way to do it but, I had to pay rent lol, and this should take care of that for a couple months if it works out. Thanks..

 

 

Deed the property to the BUYER on 12/5/10. I am assuming you have the 1500 to buy it. Have your investor excute a mortgage and note for the balance. Record the note and mortgage. Have the investor pay for it.

 

You can also have the investor execute a Quit Claim Deed. Just don't record. I would record the note and mortgage.

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With the promissory note does the buyer have something of value you can hold until paid. Something you can sell and make your money should he not pay?

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Thanks Jonathon, thats exactly what I was looking for with the mortgage Idea, also like the QC from the buyer to me. That would be the easiest thing to do I guess.

 

Steve, Im not sure if he has something like that but thats a good point. Think the promissory note idea just moved into 3rd place though. Ill have him execute a deed back to me and record it if he doesnt pay, I think hed be fine with that. Are there any cons to doing that over the mortgage and note? Seems it would be a lot cleaner just QC it to me.

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