for example i was approached by a realestate investor that I could also become a partner in his company,by being a credit investor on properties he finds and then deed the properties back over to him after closing. He agree to pay 10 to 20,000 or more depending on equity in property to me and the rest to him. and I keep my portion because it is in my name and give him the rest per contract. Is this safe. what are the pro and cons of this?
2006-10-25 12:22:28 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
There are risk in any investments you decide to take. I would not have a problem with this type of investment. However, I would want to speak with at least 3-4 of his current investors as well as see the type of paper work he uses and what the other investors are getting and how their last deal went.
It boils down to trust. Do you trust this individual? Was this individual referred to you by someone you trust? Do anyone else in the local community know this individual? Does he have any problems with the law? Did this person approach you off the streets and you don't know this individual.
You have to be careful of all those that want you to invest with them. Chose wisely and invest wisely.
Most of your banks and attorneys do not know about these type of investments, so they will not be favorable to this type of investment. You have to inquire of someone that you trust that have a working knowledge of these investments.
I hope this has been of some use to you, good luck.
"FIGHT ON'
2006-10-31 12:11:28 · answer #1 · answered by Skip 6 · 0⤊ 0⤋
Very dangerous, it is your credit on the line so you are carrying the liability. Lots of costs with real estate & you could get stuck for it. He would keep aking for more $$ to cover all the costs, and since you would already be on the hook, it would be real hard to get out.
If the plan is so good, why doesn't he use his own credit? Talk with a professional mortgage lender at your bank and have them give you an independent opinion of this plan. This sounds like you could loose a lot of $$ too.
2006-10-25 12:36:39 · answer #2 · answered by kate 7 · 0⤊ 0⤋
Dont do it.
One thing is for sure if he doesnt pay the mortgage you will be have lateness on your credit and that will bring your credit score down. also when your ready to buy a house you will have conflicts on these properties.
ITS ACTUALLY HIGHLY ILLEGAL IF YOU DISCLOSE THAT YOUR PROPERTY AS OWNER OCCUPIED. MAKE SURE YOU DO IT AS INVESTMENT ONLY
2006-11-02 09:16:06 · answer #3 · answered by MortgageGURU 1 · 0⤊ 0⤋
CAUTION, avoid heading toward High Risk Business !
Go ahead CAREFULLY !! if at all, you decide in favor.
2006-11-02 02:25:39 · answer #4 · answered by Anonymous · 0⤊ 0⤋
do your home work! check this person out find out any one else he has done business with. also check with the better business bureau to see if there is any negative/positive input.
2006-11-02 04:30:21 · answer #5 · answered by william w 1 · 0⤊ 0⤋