How To proceed In Land Trust Part IV

Remember our friend? The owner who still hasn’t left our home?nnWhat are you going to do?nnOkay go back through your pretty house manual and look at a few of your exit strategies again and know that you need to be able to move them as quick as you can (just in case you can't get anything done and can't come up with this money) and then you can at least wholesale it...a house like this should be no problem for you to wholesale it to somebody and still make some cash on it. And remember, you can’t really market it until they are out.nnAnd do not forget to check the title work. nnThe upside to this whole scenario is that you are into it for 60% loan to value, which is in essence quite a bit...well within the realm of what a private lender would loan out. The bad news is that you are looking at a private lender coming up with 300,000 bucks or something along those lines, which is not necessarily something that your typical private lender has lying around. In your part of the country, might not be as nearly as big an issue as it would be trying to find a private lender to fund a house in Tupelo, Mississippi or something like that. So, the good news is that your loan to value ratio is still very adequate for a private lender to have some interest in it. nnNow you may be thinking is this a time when I can use my own money? It brings up a good question. Is there ever a time when we can use some of our money? I mean if we can't find private lenders, is it ever appropriate to use an equity line? I can tell you, you should try not to use your own money. If you can convey to the owner that you can do the purchase subject to, keep that loan as long as you are making payments until you cash out, and then get a private lender for the difference. You should be able make that happen. You can also market to somebody but you know you don't want somebody going over there while the owner is still there and then all of the sudden they will be asking questions about what is going on. Also you are talking about going to get a re-fi loan on it or pull some money out through a lender and all the sudden the owner sees these buyers coming over and he or she is going to start asking questions.n nKeep in mind it will be easier to move the house with the owner gone. Good luck with your exit strategy!n