Legal Note Investing With Scott Carson From Good Bones Real Estate Investing With Bonnie Galam

Now you said something just there that I want to touch on from a legal perspective.

You said sometimes we do cash for keys to get the homeowners out.

Now, are you talking about like cash for like a deed in lieu?

That's correct.

Exactly.

All right.

Cash for keys.

Yes.

Or a cash for consent of judgment in case there's a second lien behind our first lien.

And I only buy first liens, senior liens.

I'm both residential commercial, but we have bought some second liens or junior liens, but we only bought them when they were behind our first lien.

Gotcha.

Gotcha.

That makes sense.

If you're owning all of them.

And I think what you just touched on there brings back some horror stories from when I took the bar exam where there was this whole section on mortgages and everyone's like, I hope there's no questions on mortgages.

And the bar prep people were like, if there's a question, it'll be like one, maybe two.

They're basically telling us don't study for mortgages.

You don't have to worry about it.

And then there was like 10 mortgage questions.

I was like, no. but I still passed the bar.

So it started out okay.

But for those of you who have not had the grand pleasure of sitting through a three-day bar exam, what he's talking about in terms of priority means it's like, who's first on title? And so when you purchase a property, there's usually what's known as the purchase money mortgage.

And that would be the first, we'll say lean on the property.

That is the most superior.