Flipping Question
Hello,
I have a hard time dealing with people at the pre foreclosure stage. I found a guy who suppose to be good at it, his deal is we get them to assign houses to me I keep paying there mtg payments don’t have to close on the deal and when the house sell he gets his share from the profit 50/50. Can you do it this way without closing, and is it a beneficiary for me come capital gain, and taxes or what?
Thanks
:-?
any help with this one, I am wondering if i am getting an ok deal with tis guy or could I do better.
thanks :-?
And this guy does exactly what for his 50% of the proceeds?
In my experience, finding the deals is the biggest challenge. If you've done all the hard work, what do you need him for?
jeff12002,
Ia m using for geting the deal before it goes to the step of court house or somebody else buys preforeclosure before i do. I don't do good talking to people trying to convince them to sdell to me, I tried letters and calling, maybe I don't have the personality for it or maybe Iam just a scary looking guy that people don't want to deal with me, or maybe I don't have the soft nice voice,,,,,,sorry for going on and on, but what do you or is there a better way.
thanks
jameel99
OK, I think I understand better now.
So you are finding the properties, and you are funding the deals. Your partner, a guy that talks well goes in and negotiates with the seller, and gets the deal signed. Is this correct so far?
It sounds like you have found a system that you believe will work for you. Good for you!
It is common that one person will find the deals, and the other will finance them for a 50-50 split.
Based on this theory, you are the one with all of the financial obligation, and you are finding all of the properties.
If I were you, I'd try to negotiate a 75-25% split, definately no less that 6o-40% in my favor. But, I'm not you.
I would suggest that you have a partnership agreement worked up, and get everything you can think of in writing. This would involve what happens if the property doesn't sell quickly, and what happens to the proceeds when your financial commitment exceeds a specifiec period of time, to how the partnership can be dissolved.
You might even consider signing a new partnership agreement on each property you do together, with no commitment to do any deals together in the future, just in case something comes up.
I think you can probably work something out with this incividual, or someone else that can be beneficial for both of you. Just get it in writing, and get it signed so there are no surprises.
good luck,
Jeff
What you are doing is called subject 2. Yes it can be done that he has them sign over the deed to you and you make up the back payments to stop the foreclosure. John Locke has written something on subject 2 investing. I have not read it but people say good things about it.
Working with a partner like this is great. But make sure you have some safeguards in place.
1) If you are bringing the payments current then you name should be on the deed.
2) Must have some rules as to what properties qualify. You do not want to bring the payments current on a house that has no equity.
3) Make sure you know what you partner is telling people. Not a bad idea to go with him a couple of times to the houses.
Thanks for the feedback.