James Gage’s Real Estate Investing: Tip of the Month

Without recourse

There has been a lot of misinformation circulating through the real
estate investing community about liability issues concerning
assignments, so my attorney, several years ago, had me add the two
simple words “without recourse”; meaning if
the party I assign the contract to defaults, there can be no recourse
against me.

I have a second valuable tip for Home and Condo renters, and for
individuals that do lease options. Have a clause put into your lease and lease option contracts with the seller, which requires the Property owner to supply documentation to
you monthly that proves that they paid the mortgage. By documentation
I mean a copy of their mortgage statement. Also state that the Rent
payment will not be made until the mortgage statement is received. If
they do not agree to these terms, just move on to another landlord or
lease option seller. A reputable landlord eager to rent their
property will agree to this.

Note: In the case of lease options, if you feel that the seller might
not make the payments; insist that you pay the bank or mortgage
company on a monthly basis.

This is just a sample of the useful information you receive as a Gage Consulting Group Newsletter subscriber, why not tell others? They will thank you for it; direct them to http://www.JGage.com. Just Click on the right side of this blog under Rent To Own Real Estate Guru.

Hear James Gage, Live, Saturdays on the MIND YO BUSINESS talk show at 9:45am, Eastern Time, on XM Radio, Channel 169.