A Case for LEASE / OPTION - Posted by James-SC

Posted by Doug (ON) on September 17, 2001 at 17:19:37:

I’d offer to option the property for the mortgage balance and scratch that $1-$2k at closing. This seller is ‘up the creek’ unless you take over her payments.

Just point out to her that if she sold through a realtor, even if she managed to find a buyer at full market value, she’d have to come OUT of pocket something like $6k to close and that’s assuming she can keep making payments for the next few months while the realtor tries to find someone.

Besides, you need that $1k to market for a T/B.

Just remember, SHE has the problem, not YOU!

Doug

A Case for LEASE / OPTION - Posted by James-SC

Posted by James-SC on September 17, 2001 at 16:03:39:

The seller called me today, she would like to
sell her house with Lease/Option , here are
the Information I have.

Asking price. $165,000
1st loan: $138,000 ( 8% VA assumable loan, pymt=1080)
2nd Loan: $22,000 ( pymt = 320)

House is 3 years old ( she is original owner)
House need some carpet cleaning and Door,s lock
need repair.

  • Seller needs $1000 to $2000 at closing.
  • It is 3 Bed, 2 Bath, 1700 s/f, lot size 1/4 acres.
  • Seller,s motivation: She is moving to another Town.

I need help on how to construct this deal, FMV is around
$165-170,000, located in a new subdivision and high
traffic area.
thank you all for feedback.

Thank You All ! - Posted by James-SC

Posted by James-SC on September 17, 2001 at 23:00:56:

per your all GREAT suggestions, I came up with this plan.
1)- Get the DEED,including 1st and second mortgage.
( I do not know who is the second mortgage Holder.)
2)- Put the Deed in Land Trust.
3)- ask seller , pay 2-months mortgae payment after
she moves out.
4)- To find a T/B with L/O , 3-5% down and montly
payment of $1650 ( hard to get).
5) - pay $500 to seller now, and $500 at closing.

Ok. Any idea, I hope I didn,t mess em up.

Re: A Case for LEASE / OPTION - Posted by Tom – IN

Posted by Tom – IN on September 17, 2001 at 21:43:37:

I’d offer her a Subject To, and ask her to pay two months on the mortgages, or just take it subject to the first mortgage only, and give her her 2K at close.

Re: A Case for LEASE / OPTION - Posted by Brian M. Powers(MI)

Posted by Brian M. Powers(MI) on September 17, 2001 at 21:02:10:

I think it’s a better subject-to deal. 2 mortgages, seller moving out of town, wants some cash at close…I’d definitely want the deed here.

Get the deed, give the seller $1K to leave the picture and sell on a LC for $10K above FMV, $175K. Get 10% down from your buyer, $17.5K and offer to pay off the second for a steep discount. Then you’ll be left with just the 8% first and a real nice monthly cash flow.

BMP