Posted by jarod on January 05, 2003 at 15:57:35:
Bill if you have time would you answer a few questions I have in the chatroom. It allows for less time in between posts and since you suggest getting this house wrapped up ASAP, the quicker I can get resolution the faster I will be able to do so.
Help with lease option - Posted by Jarod
Posted by Jarod on January 05, 2003 at 15:10:29:
I need some specific advice on a home with a motivated seller who needs to get out of their home quickly or they are going to a realtor. First the details:
1750sqft SFR in nice neighborhood built in 1980
3/2 with 2 car garage and new frig, dishwasher, tile
FMV of 109k done by her realtor (she paid 80k in 1994)
She is about to list it with a realtor on Jan. 19
Here is my situation. I called her add which said she was willing to sale it for 102k or even rent it. I called her and offered to help by lease purchaseing it from her. She then told me she was interested but that she really would like an investor to buy it from her and rent it to her in order to give her time to build her new home. It turns out her and her husband purchased a large amount of land with the intentions of building a new home on it. The bank has told them that they can qualify for the loan to build the home if she were to sell or rent her present home. My question is, would lease purchasing her home and renting it to her be good enough to qualify her for her loan to build her home (would I have to use a seperate lease and option contract even though that would compromise my interest?). If not does anyone know of a way without having to come up with 100k to get this home? I have lots of knowledge on lease options but not much of anything else. I do know that her loan is likely not assumable since she purchased it in 1994. I am also not sure what to do next, I told her I would mail her out some more info today. Any and all advice is appreciated. Thanks Jarod.
Re: Help with lease option - Posted by Bill
Posted by Bill on January 05, 2003 at 15:45:36:
Yes you can sign up a lease option. It is critical that you go ahead and sign the deal up ASAP to get the property tied up and thus keep the owner from having any options besides dealing with you. You can easily write in a future date for when the lease will start based upon when she will be vacating the property. Naturally your lease payments to her would be delayed until then or some later but predetermined date. Sounds like an easy no money down deal for you. Try to get extra time from when the lease becomes effective until your first lease payment is due. This will give you time to market the property. Good luck.