- Joined
- Sep 2, 2007
- Messages
- 97
Hello,
In the situation where you are placing a Tenant/Buyer into a property where you are not on TITLE, because you have a Lease Option with the Seller with the intent of going out and finding a Tenant/Buyer for his property. (Sandwich Lease)
What exact steps does an investor take to see this deal through to the Tenant/Buyer successfully qualifying for a conventional mortgage and the correct process the Investor would need to take to getting properly paid in the end?
I am more so looking for the correct steps Veteran Rein Members are currently using to avoid dealing with the following issues below.
1st: When the T/B's bank pulls title and see's the Investor is not on Title they will red flag it and likely refuse to finance it for the T/B?
2nd: If the Tenant/Buyer goes through CMHC/Lending Institution and the underwriters see that the Tenant/Buyer has been paying all these Monthly Option Credits and the Initial Option Deposit to the person who is not on title would they still see those funds as a credible down-payment?
Solution(A):
Do a Simultaneous Close (Skip Transfer) This use to be a common method but now I am hearing Banks do not like to see this anymore. Some members have stated this method still works if that`s the case what steps are you taking to see this out without any headaches? Now that you have done this how is the T/B`s Initial Option Deposit and Monthly Option Credits he has paid you seen in the New Contract with the Seller as creditable funds towards their Down payment since they have been paid to you the Investor not the Seller. Is it alright for the seller on the purchase contract to simply credit those funds to the down-payment when he actually did not receive them?
Solution (B):
Just before the T/B goes to qualify conventionally you do up a new contract between the TB and the Seller since the Bank likes to see a contract between the Seller and End Buyer.
But again what about the T/B's monthly credits and deposit he has paid you over 2 years how are they now seen under this new contract since they have been already paid to you the Investor?
Can the seller on the new contract credit those payments the T/B made to you the investor as the T/B's down-payment?. Will the T/B/s lending institution credit those funds as a credible down-payment?
In the situation where you are placing a Tenant/Buyer into a property where you are not on TITLE, because you have a Lease Option with the Seller with the intent of going out and finding a Tenant/Buyer for his property. (Sandwich Lease)
What exact steps does an investor take to see this deal through to the Tenant/Buyer successfully qualifying for a conventional mortgage and the correct process the Investor would need to take to getting properly paid in the end?
I am more so looking for the correct steps Veteran Rein Members are currently using to avoid dealing with the following issues below.
1st: When the T/B's bank pulls title and see's the Investor is not on Title they will red flag it and likely refuse to finance it for the T/B?
2nd: If the Tenant/Buyer goes through CMHC/Lending Institution and the underwriters see that the Tenant/Buyer has been paying all these Monthly Option Credits and the Initial Option Deposit to the person who is not on title would they still see those funds as a credible down-payment?
Solution(A):
Do a Simultaneous Close (Skip Transfer) This use to be a common method but now I am hearing Banks do not like to see this anymore. Some members have stated this method still works if that`s the case what steps are you taking to see this out without any headaches? Now that you have done this how is the T/B`s Initial Option Deposit and Monthly Option Credits he has paid you seen in the New Contract with the Seller as creditable funds towards their Down payment since they have been paid to you the Investor not the Seller. Is it alright for the seller on the purchase contract to simply credit those funds to the down-payment when he actually did not receive them?
Solution (B):
Just before the T/B goes to qualify conventionally you do up a new contract between the TB and the Seller since the Bank likes to see a contract between the Seller and End Buyer.
But again what about the T/B's monthly credits and deposit he has paid you over 2 years how are they now seen under this new contract since they have been already paid to you the Investor?
Can the seller on the new contract credit those payments the T/B made to you the investor as the T/B's down-payment?. Will the T/B/s lending institution credit those funds as a credible down-payment?