Help! New to this and already have first deal in the works! - Posted by Jeff
Posted by Jeff on March 11, 2000 at 20:23:32:
Please help. My wife and I were discussing getting into this business and a deal just fell into our laps. We are very new at this and need some sound advice.
Here is the deal.
Indianapolis downtown historic district. We find out that a gentleman is looking to get out from under a house he just inherited. It’s more then he can deal with and he took out a loan for $40,000 that now he can’t afford. The house is pretty run down and would need a lot of work to get it right. maybe $30,000 or $40,00. The thing is, this is one of the last houses in this area that isn’t finnished. If the market for this area was any hotter the houses themselves would combust! One and two bedroom single story shotguns have been selling for $125!!! This is an 1850 sq ft two story!!! It would, if done right, go for at least $120 or more.
The house was just appraised, by a very conservitve inspector, in January. $42,000. I’m sorry, but I don’t think this guy has firm grasp on the market in this area. The seller doesn’t care about making any money. He just wants the bank off his back. The loan is not assumable and I couldn’t get a bank loan even if it was. BUT, the seller is open to a Lease Option.
We are looking at turning it around and doing a lease option to a buyer who is looking for just this type of fixer upper. They have money, and the skills, just no the credit! We’ll pocket a couple thousand on the deposit and $120 a month!!!
I’ve went straight to the book store and found a couple of books that talk about lease option. We bought Ron LeGrande’s. But here is the real stickler. These books talk about a lot of great concepts, but what I need is a paint buy numbers kit!!!
Where can I find contracts?
How do lock this guy in to me? I want to make sure that I’m the only one he can deal with. I know it sounds teritorial. But if I can get this deal to fly it will really give me the incentive I need to go out there and really go for it!!!
Any and ALL advice is not only welcome but begged for.
Jeff and Amanda