Posted by T2B - FL on October 24, 2000 at 18:47:03:
Brian,
Thanks for the great response!
FMV for the property is around 120,000 with about 6-8% appreciation right now in this area.
I will approach the seller about the subject to and will let all know if that works.
Thanks!
Tom
Help! Selling first property - Posted by T2B - FL
Posted by T2B - FL on October 24, 2000 at 17:15:37:
I have lease optioned my first property. The details are: $1000 down, $900 a month and $118,000 asking price for 3 years.
My problem arises with getting rid of the property. I was looking to sandwich L/O it for $5000 down, $1300 a month and $128,000 purchase price for 2 years.
I then get a call from a fellow asking if he can put more down on the property. He wants to put $15,000 or more down with payments of $900-1000 a month and he wants a longer L/O term because of a settlement against him.
I don’t have great credit and my debt to income ratio is high. So, I don’t think I can get a mortgage myself in 3 years to hold this property for longer than my 3 year term. However, I would hate to leave that much cash, up front, on the table.
Any ideas on if and how I can pursue this fellow or should I just look for another T/B’er to L/O to.
Sorry so long!
Thanks!
Tom
Re: Help! Selling first property - Posted by B.L.Renfrow
Posted by B.L.Renfrow on October 24, 2000 at 18:15:27:
I’d check that potential buyer out. Could be that everything’s legit, but you don’t want to end up with a drug dealer or something. What kind of judgment does he have against him? How’s his credit otherwise?
IF everything checks out OK, you might go back to your seller and see whether they’d agree - in light of the fact you had an approved T/Ber - to do a subject-to deal with you instead of a lease option. That way, you could L/O to your buyer for as long as you want until he gets that judgment cleared. Or, you could sell on a land contract. Since title wouldn’t transfer until he paid you in full, there shouldn’t be a problem with the judgment attaching to the property until you’re out of the picture.
But don’t plan on the buyer being able to cash you out anytime soon, unless he has a plan for dealing with the judgment.
You don’t mention what the FMV of the property is. Hopefully, you’ve checked comps rather than just taking the seller’s word for its value. If it’s truly a great deal, you might offer the seller a few thousand now to walk and do a subject-to with you.
Brian (NY)