Help with this lease purchase deal - Posted by Brian

Posted by John (Rome) on January 09, 2003 at 06:27:39:

“Take over the mortgage sub2 and get the deed. Next, get an option from the sellers to purchase the home for 40-43K in two years”

that’s a typo I presume…as he doesn’t take over the mortgage but the property sub2 and as such has title meaning the home becomes his and why at this point he would want to ask for l/o from the sellers is beyond me…but…who knows? one never stops learning :-))

J

Help with this lease purchase deal - Posted by Brian

Posted by Brian on January 08, 2003 at 21:14:16:

I own 2 dump trucks. A person who owns a house wants to
trade me the house worth approx. $45000.00 for the 2 dump
trucks. The Insurance on the house is $300.00 per year and
the taxes are $300.00 per year. The house is and has been
rented for quite sometime to a couple who wants to buy or
lease purchase the house. There is a mortgage on the house
for $24000.00. The dump trucks values are $24000.00 each.
The person who owns the house is willing to let me take over
the mortgage or work out a lease purchase or what ever I deem to be the most opportunistic way to acquire the property.

Any thoughts or suggestions would be greatly appreciated.

Thanks

Re: Help with this lease purchase deal - Posted by Rich Hanna

Posted by Rich Hanna on January 08, 2003 at 22:16:21:

Brian,
More info would be best but here is my suggestion. If the sellers are truly, motivated and have “committed” mentally to work with you, you should be able to keep the dump trucks, get the house and still make the sellers happy.(WIN/Win) If you do not want or need the trucks then that is a different story, However, here is what I would offer: Take over the mortgage sub2 and get the deed. Next, get an option from the sellers to purchase the home for 40-43K in two years. Next offer to pay the rest of the carying costs of the house so that the seller is not hemmoraging money. Now, the seller only needs his cash and it sounds like he is willing to wait for it. You can then sub L/O to the tennants. Make sure the monthly payments from your sub-tennant are more than the payments you have to make to the seller. Try to get 3-5 months rent as a security deposit that will be credited toward the downpayment from the T/B’s. Let the t/b’s have an option to buy from you after one year at 47-48k. You can make money on the upfront option consideration, monthly pos CF and 6/7k on the back-end if the t/b ultiamtely buys. If he dosent buy you still have another year before your option expires so you should be able to find a way to cash out the sellers by this time. Hope this helps, best of luck!
Rich