How Many Tenant Buyers Fail To Refi?
Ok guys how many deals fall apart when it comes time to refi? I have had 3 in the past 2 months. While I know I get to keep the down payment it is still a pain. House always needs something paint cleaning etc. Always cost bucks plus the holding cost.
So when you are doing your deals do you build in a failure rate? When I do my rentals I build in for vacancy should we be doing that with sub-to investing? I bet I could have asked this about lease options as well. Thanks for the help.
J
Tbird,
Thanks. The last one that fell apart was because she pulled a fast one. We had her all set with a great loan but on the day of close she just happen not to have the money to close. It was ugly. So you willing to share anymore? Always like to hear secrets.
J
T,
Thanks again. All of your points are very good and I have followed all of them from the start. (Great minds think alike?)
I was just wondering if I was missing something. I have just seen an increase in this problem and was wondering if there was a way to build it in so as not to get worried. I like to have a very good plan in place and all inputs need to be looked at.
J
I am NOT and attorney, I am NOT giving legal advice.
Yes, you need to get a new policy.
No, the lender does not need to "find out" take title into a land trust using the sellers name or property address as the "name" on the trust.
The MOST important question when taking over in sub2 is, Do you have the funds to liquidate the debt if the deal does bad a few months down the road? Do you have the money to maintain the holding costs for several months if you can not find a buyer?