n doing wholesale deals everybody should keep in mind
there are certainly a lot what former President Ronald
of things that can go Reagan said: “...trust but
wrong. One example is a house verify!”
that was bought and taken over
subject to the existing financing The next big mistake was on
(where the sellers mortgage another subject to transaction.
remains in place and the seller This guy said that all he wanted
deeds over the property). At was $5,000 and he had a pay off
first the seller seemed like a statement that indicated his pay
nice guy having good intentions, was off was $22,000 and that
but he didn't pay his bills. Soon number worked, 22 plus 5 is 27.
began the problems of getting the At $27k this is a good deal so we
guy out of the house. The guy had went to a money partner and said
come into a real hard situation, pull out the $5,000 and let the
his daughter had been shot and he sign over the deed right and then
was given a lot of grace, we would go and pay the mortgage
basically he was allowed to live for a couple of months and then
rent for free for quite some would pay off the house when we
time. But eventually the guy left wholesale in the next 30 or 60
owing a $700 bill. It would have days. So, we gave the seller the
cost more money to try to collect $5,000, but we forgot to do the
from him legally than we could title search. What the guy didn't
collect from pursuing legal tell us was that the $22k
action. We consider that we did mortgage was not the only
two mistakes in this case: first, mortgage, but he had a 2nd short
we didn't set appropriate term mortgage loaned from a
boundaries with the seller and mortgage company and he was
the second one, we trusted people already in the process of
a little bit too far. So, foreclosure on it too. Now we
would have to pay off another $6k
and so the deal was no longer any
good. We felt it wasn't a good google_alternate_ad_url =
deal anymore as we had already "http://www.isnare.com/adsense-al
given $5,000 and now we would t-728x90.php";
have to give a $28,000 pay off
and be in the house at $33k. The google_ad_width = 728;
guy didn't give the money back
and again trying to persuade him google_ad_height = 90;
legally would have cost more than
we had to collect. That's the way google_ad_format =
we lost $5,000. So, when you "728x90_as";
start a deal check the title
first before giving the seller google_ad_type =
any money! You don't want to lose "text_image";
your money! This is also a reason
to avoid kitchen table closings google_ad_channel
as opposed to spending the money ="3545651507";
with a title company or closing
attorney, because in the long run google_color_border =
doing it the right way will save "FFFFFF";
you money and let you sleep
better at night. google_color_bg = "FFFFFF";
google_color_link =
type="text/javascript"> tion.com/pagead/show_ads.js">
type="text/javascript"
About the Author:
David offers a free E-course on quick start strategies at: http://www.FreeRealEstateInvestingCourses.com. Find more about David at http://www.RealEstateTeleClinic.com
