From: "Jeff Strickland" 
Newsgroups: alt.org.natl-assn-mortgage-brokers
Subject: Re: Mortgage ideas wanted.
Date: Fri, 3 Oct 2003 15:01:21 -0700
	charset="iso-8859-1"


"ATB"  wrote in message
news:eu6cnTq9BqY2R-CiU-KYgA@comcast.com...
> "Jeff Strickland"  wrote in message
> news:vnrjkt89giu725@corp.supernews.com...
> >
> > I must be missing something.
>
> I think you did miss something.  Here is my original post:
>
> "I am buying a semi-detached (twin) single-family home family home in
South
> Jersey as an investment.  I am paying cash ($90,000), so I don't need a
> mortgage.  But, one idea I had was to try to "flip" the property quickly
by
> selling it to a first-time homebuyer.
>
> So, here's my question:  What are some creative mortgage
incentives/options
> that I could offer as a seller that would be most helpful in getting the
> buyer a mortgage and creating a quick sale?  The property would probably
> appraise for about $110,000."
>
> Once I own on the property, I want to do one of two things -- both options
> are designed to get most or all of my cash back out of the property for
> future investments.  One option is to rent the property out and then get a
> mortgage in my name so I'll get my cash back, so I can then invest in
> another property while collecting rent on this one.  The second option is
to
> just "flip" the property right away to get my cash back out and make a
> profit now (or take the profit over time in the form of a second mortgage,
> etc).  I was ansking about mortgage incentives that I could offer the
buyer
> that might help me be able to sell the property more quickly.
>
> I wouldn't want to take back a first mortgage because that would tie up my
> funds that I could put to better use for a higher return.  An excellent
book
> that I read that really explains this in more detail is called, "Real
Estate
> Riches" by Dolf De Roos.  Despite the title, it is not a
> get-rich-quick-scheme type of book.  It is really very interesting.
>
> And, about the predatory lending stuff -- it's a hot topic these days.
> There was a one-hour TV show about this on our local stations recently.
> Anyone can watch a replay of the show by going to
> http://www.lawjournaltv.com and looking for the September 22, 2003 episode
> that is about foreclosures and bankruptices (or something like that).
>
> Of course, what I would be doing in any case wouldn't be any kind of
> predatory lending deal.   But, there are what are known as "strict
> liability" legal issues that could be involved in any loan, especially
loans
> to people who otherwise couldn't afford a mortgage.  So, ironically, I
could
> be doing a good thing and then, if the need arose for me to have to
> foreclose the mortgage, the borrower could drag it out for years saying I
> failed to properly disclose something in the loan documents.  In New
Jersey,
> there are no trust deeds and foreclosure is a civil action that must wind
> its way through the civil court system.  It can easily take a year, or
even
> 2 or 3 years, to foreclose and regain possession of a property.
>
> Well, you get the idea.  I don't want to hold a first mortgage but
wouldn't
> be opposed to risking the "profit" portion of the sale of the property.
>
> I appreciate your input and your thoughts and ideas.  I hope this makes
what
> I am trying to do a little more clear.
>
> Thanks again.
>

I get it. I missed the part about wanting to get into another investment
property with the proceeds from this one, and there are no proceeds per se
if you carry the 1st. That is a valid concern on your part, and I missed it.
I was questioning why you would go with the carry back on the second, but
not consider carrying the first, I understand why you would do that now. I
can't help you with the question as to how you can offer an incentive, but I
can argue for days that you shouldn't do that. ;-)

I hope I didn't come across as argumentitive, and it appears you have
already considered what I said anyhow.