These videos are PRICELESS!! THANK YOU SO MUCH, PACE AND JERRY, FOR YOUR GENEROSITY,, YOUR KNOWLEDGE AND EARNESTNESS AND INTEGRITY IN DELIVERING IT. VERY VERY GRATEFUL!!
Novations, for some reason, has been the one creative strategy that has been confusing for me. Again, both of you have put it in layman's terms. Gracias, dos flippin genii.
The sheer, volume and wealth of experience in these conversations is without a doubt the most priceless education I’ve gotten yet on the subject matter
I have worked my first one novation as an examiner long story short the property is in foreclosure but with my knowledge i was able to stop it (long story) but short the seller and the member of the novation are stand up people and we were able to close on it
This is GENIUS! There are so many valuable free resources here, I'm almost embarrassed to ask - but do you guys have a copy of a novation agreement we can see? This strategy is actually really really helpful for what I'm doing in my part of the country right now. You guys rock!
So many questions could be asked on this one... For example: in Pace's example with the 200k property that needs 50k in rehab and the estimated final sales price 400k, Pace says that he will take private money for the rehab (50k), lean it against the property; then he will put another lean for his forecasted profit (150k) on the property. I can't imagine a seller who would be willing to put a total of 200k lean on his property that he wants to sell for 200k. It's like he just signed that he gives away his property for free. Mind: he signs these before the renovation, so before his property's value would be pulled up to 400k. What am I missing here? Please help. I already think that the 50k lean for the renovation being put onto the property would scream "fraud" to 99% of people, because they are asked to put their own property behind someone else's loan. That someone else could just run off with the loan and leave the lean on the seller's house. Again: please do help me understand. I really want to wrap my head around these.
Each of these strategies need a "recipe play book" that lists who/ what you will need to get this done, with step by step that includes the documents needed in each strategy. Make it dummy proof
question, so when you do a novation agreement, and you want to add a executory contract, how does that work? Does it get added at the agreement signing and you turn it in to title ? and do you sell that with the novation at closing...?
I loved the idea of novation, i'd love to understand more about it. I feel like there's more to discuss on it, it can't be that easy lol! I'd love to hear more. I want equity and tax right offs, but this could be an option to fund those dreams!
If u can’t sell the house for a big enough spread or met the owners guarantee price , do u still have to pay him that amount .. example , owner was promised 200k , after sale of house , commission, etc .. homeowner only left with 198k , and u lost money on deal , do u now still have to pay the homeowner the 2k short
Question #1: Where can I get a Novations/Executory Contract? I don't see either of them on Flipster. Question #2: Am I FSBO'ing this? If so, do I need to be a licensed REA? Question #3: By taking the Novations & Executory contract route, am I doing both of them at the same time under one contract, or two? Or just the Executory w/ the intent of novation in the terms? Question #4: How would I give the Seller full-confidence to sign an Executory contract w/ the intent to novation it, since I would essentially be in full-control of the property?
Here's a question... As I'm getting into investing I'm also currently doing my pre-licensing course (in Georgia) and I'm about 30% through that. From what I'm learning, license law applies whenever you are facilitating the sale of a property (1) for someone else (2) for compensation. In other words, brokering a deal is defined by the fact that you are neither the seller nor the buyer, but rather are a third party providing a service for a fee. So obviously wholesale and flips would not be subject to license law. But how would a novation not be subject to license law, as it sounds like you're basically just brokering the deal for the seller? Or I guess a better way to phrase it is: how is a novation different from brokering?
If you're protecting yourself w a novation by liening your profit, what is the need for an executory contract? i understand it says you own the property though the deed is in limbo, but what if the house doesn't sell? I don't see how the seller would agree to that
Question, I’m a title examiner that can do searches and examine at any time during work or off the clock at home since I have the software now valuable would my services be when making a deal when you know what’s on title the debts or any ghosts in the closets?
Just went through the FHA anti flipping rule. It is 90 days from when the deed changes. I made the mistake of not moving a property into my entity until right before listing (after doing 4 months of rehabbing). It is 90 days of seasoning on the deed and requires additional documentation and a second appraisal that the buyer is not allowed to pay for. At least that was my understanding when reading the rules.
How do you place a lien for yourself? Have the seller sign a separate contract saying he will allow a lien to be placed then take it to the courthouse?
Why would the seller agree to add a lean to the property for a future estimation of the value of the property? What if the market changes and you don't get the expected resale value?
