I SECOND THAT DEAL....... What Do You Think? - Posted by Rhonda Tx

Real Estate Investing Real Estate Financing
#1

Posted by rhondaTx on July 18, 2001 at 21:32:07:

(SHE)… I will lease for a year… and buy out at the end for the asking amount of 20,000. This way I assumed that I would have the time to clear up my credit as well as find permanent financing. As far as the foundation. She is going to finance that repair, I will do the cosmetic repairs as I see fit. I might just do it with the owner holding the note instead of leaseing. She could allways sell her note after it becomes seasons. A lot of options available looking for the most affordable one for me. Thanks for your input…

#2

I SECOND THAT DEAL… What Do You Think? - Posted by Rhonda Tx

Posted by Rhonda Tx on July 17, 2001 at 18:09:13:

I believe that this is a good deal. Please let me know if I’m on the right track.

Found a brick home in a nice neighborhood, was a rental, have foundation problem. Owner will finance the foundation expense. Discuss a lease with a option to purchase in a year. So I won’t have to come up with a lot of money up front. The Tax Value with the Appraisal district is 47500.
she is willing to sell for 20,000. Working on getting Comps now. Think ARV should be 55,000 -60,000 easy.
Will owner finance deal and sell note after it becomes seasoned. 3/1.5/carport screened porch, @ 1600 sqft. Owner only wants 400.00 lease amount after repairs are done. until then 200.00. Let me know your thoughts, repairs should run about 3k-4k (paint-redo cab. in kitch. carpet) few windows replaced.

#3

Re: I SECOND THAT DEAL… What Do You Think? - Posted by JohnBoy

Posted by JohnBoy on July 18, 2001 at 21:07:16:

Are you saying you would need to rent for a year and then “discuss” a L/O in a year, or are you saying seller with lease with an option for one year?

In either case, ONE year is not enough time for you as the investor. You need to get a minimum of 3 years or longer. The longer the better!

You say repairs will run $3k - $4k for paint-redo cab. in kitch. carpet and a few windows replaced.

How much will it cost to repair the foundation? You said seller will finance that cost which I’m assuming he means he will pay for it and you can make payments to him for it? Whatever, you need to know how much that will cost if you’re going to be paying for it one way or another. This could be a costly repair depending on how bad the foundation is. Make sure get someone that knows about foundation problems to look at this and get an estimate from them as to how much cost is involved.