Hi, I was just doing some reading about no money down business deals and the book was talking about how you could do a no money down deal and own a business by taking over the loan payments of the business owner. I was thinking that this might be something that people could do for property. Eg: If the home is worth $200K, and the owner owes $80K, you take over the payments and the owner can walk away with no default. Does anyone know if this is possible? And would there be any stamp duty implications? Any assistance would be much appreciated, because if it is possible I see it as quite a viable strategy if interest rates rise as expected.
Regards, Magnet
Magnet I think they do that in the States a lot, but the banks mustn’t hold the title the way they do here.
In your scenario you would not have the title of the property in your name (same as a wrap buyer I guess), so you would really want to have a contract drawn up to protect yourself in this case.
There would be stamp duty implications once you had title transferred, which you’d want to do sooner rather than later to draw on some of the equity that you have created.
I’d be very wary of this strategy. I think it would take a good solicitor, and a desperate seller to ensure you don’t get burnt.
Cheers
Mel
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