| Copyright 2005-2007 All Rights Reserved Charles E. Marunde & FreeRealEstateLaw.com |
| Paper Transactions in Real Estate |
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You can invest in real estate without owning any real estate. For
example,
Red Flag: These transactions are not for the faint of heart. These are
advanced techniques, because there are so many traps for the unwary.
A thorough understanding is critical to avoiding disaster.
example,
- You can buy notes (secured by a deed of trust) at a discount, or
- You can buy a Real Estate Contract, aka Land Contract, at a
discount. - You can buy an Option to Purchase property and either exercise it
or assign it for a profit. - You can assign for profit a Purchase & Sale Agreement you
obtained. - You can assign a lease for a profit.
- You can buy out a party being foreclosed on and deal with the
secured party, and sell the property before it ever gets in your
name. - You can buy out a troubled party and obtain a Quit Claim Deed,
and then sell that paper. - You can wait until property has been foreclosed, and go to the
secured party and buy the rights to own or re-sell the property. - And there are many more combinations.
Red Flag: These transactions are not for the faint of heart. These are
advanced techniques, because there are so many traps for the unwary.
A thorough understanding is critical to avoiding disaster.
