can I help my baby bro? - Posted by lil_joy_OK

Posted by Ben (Ohio) on July 03, 2003 at 13:20:24:

Here is my thought (I focus on lease options and almost everything looks like a lease option to me, so bear that in mind!)…
Figure out the fair market value–check out free sites to see what the place is worth–if there’s not much equity, there may not be a reason to pursue something.
Figure out the legalities–disentangle the parties and learn what it will take and the willingness to separate her from the property. If there’s significant equity, it could get messy, but if it’s not much and if you can buy her out, consider that. I don’t have much experience here, but I’m thinking that if she’s ready to file bankruptcy to leave behind the place, then she should be happy to walk away if she can be released from it and free to pursue her own thing. The research and legwork might be significant.

If you can figure out these things, and it looks like what they owe is rather less than the value, then move on…

The basic technique is to find someone to “rent to own” this property and let your brother move out. You may have to do cosmetic cleaning to make it sale-able and attractive.
You offer the home (in the paper, put up signs and flyers, etc) at a monthly payment exceeding the mortgage payment, say, $700 if the market will support that. You require, say, 4 month’s money up front to move in. This is called “option consideration” and it secures the “tenant/buyer” the right to purchase the home at a fixed price (full retail value) in one year.
The monthly part is embodied in the lease contract. The option consideration is embodied in an option contract.

Your ad says: Rent to own xbed/xbath cape for $700/month 555-1212.

You have positive cash flow and your first investment deal.

You can call ads in the paper “we buy homes” tell them your story, see what they offer. This will likely tell you the wholesale market value of the house and another way to dispose of it.

The key is having good lease option contracts and grasping the concepts.
Also key in this case will be the divorce/disentanglement details.

It’s a way to move a property that puts tenants in there who want to own the place, will pay on time, and who will take care of the piddly maintenance contractually. It opens the potential market much wider than brokers and realtors can offer.

email me for more info if you want some.
I think you really need to figure out if you can disentangle stuff, as I think your intention to help rests on that situation.


can I help my baby bro? - Posted by lil_joy_OK

Posted by lil_joy_OK on June 28, 2003 at 06:01:28:

It seems my baby brothers wife want a divorce. They bought a house together about 5 years ago. It sounds like she has decided to file for bankruptcy and let the house go back. She thinks she will be able to get a nicer house on her own. He can’t afford to keep the house by himself. I know from experience what happens to ones credit report if an ex spouse get’s the house and then let’s it go back and files bankruptcy. My ex’s bankruptcy shows up on my credit report because of the house grrrr.
I would like to spare my bro from having to put up with what I am putting up with. The house is 3 br 2 bath no central h/a and they paid right around 56k for it 5 years ago. I’m very new ie no deals under my belt and not thrilled with the idea of being directly involved with this dirorce thing but would still like to help him somehow. Does anyone have any good ideas?

Re: can I help my baby bro? - Posted by Matt

Posted by Matt on June 28, 2003 at 06:46:08:

Wheres the property located? What kind of condition is it in? Whats left on the mortgage?

Re: can I help my baby bro? - Posted by lil_joy_OK

Posted by lil_joy_OK on June 28, 2003 at 06:52:09:

It’s in north Tulsa, OK. The house is in pretty good shape as far as I know but I’m sure it could use some work. He did mention something about plumming problems. I remember mom said something a year or so ago about a tree root causing problems. I don’t know what the interest rate is so can’t give an exact answer on how much is left on the mortgage but they have been pying around $500 a month for about 5 years