Posted by Brian M. Powers(MI) on July 07, 2002 at 21:28:53:
yes i agree that you can sell a house on lease option for $7500 above todays FMV…that is how the money is made.
i just think that the assignment route is a tough way to go about it.
BMP
L/O offer…need advise - Posted by Kevin
Posted by Kevin on July 07, 2002 at 12:24:58:
Home is 2 1/2 yrs old. Balance on mortgage is $72K Owner wants $85K (he paid $74.9K). Comps show value between $78-80K. PITI is $600.00 and could rent for $750.00> What’s my best plan??? Motivation is to get a bigger home. Doesn’t appear to have a great deal of urgency. Any ideas?
K
appraisal - Posted by Donald
Posted by Donald on July 07, 2002 at 15:55:31:
Kevin
Kinda hard to make any money buying at or above appraisal. (some folks do it, I suppose)
I would move on to the next ‘deal’.
my 2 cents
Donald
Re: L/O offer…need advise - Posted by jeff
Posted by jeff on July 07, 2002 at 15:25:43:
leave this deal alone, it is no DEAL. if your willing to pay above FMV for properties then give me a call and ill shuffle you as many as youd like. you name the price range il;l slide properties through you faster than you can count them.
if your wanting to make some profit on some of your deals somewhere down the line, id suggest you keep looking. you can buy any property anywhere for above FMV, with that attitude you can buy mnore properties than even the most seasoned veteran of investing. the down part is that you wont have enough time to buy the number you desire becasue of the impending bankruptcy your gonna have to file in a few months.
look for properties that are well below FMV and pull yuor profit uot of that difference in price from your purchase to the FMV resale.
somebosdy else here suggested you take 2K for assignement fee, good luck getting that done here. if yuo tie the property up for 5K over FMV, how are you gonna collect another 2K for assignment fee which puts the end buyer 7K over value. after you make that sale, send that guy to me and ill sale him some more properties similiar to that. i can tie up every property in my county with those numbers, if you can send me the buyers, ill give you 10% profit for referral fees.
Re: L/O offer…need advise - Posted by Brian M. Powers(MI)
Posted by Brian M. Powers(MI) on July 07, 2002 at 12:56:22:
until he stops asking $5000 over comps about all you can do is politely tell him that you feel the market value for the home is $80K, wish him luck, give him a card and tell him to keep you in mind if he can’t sell for his price.
some people just aren’t motivated enough by the right factors to deal with. your time would be best served looking at other leads.
BMP
Re: L/O offer…need advise - Posted by Matt KY
Posted by Matt KY on July 07, 2002 at 12:48:10:
has he shown any sign that he might be open to a lease option?
if not, ask him if he would let you take over his payments and then completely cash him out in a year or 2.
if youre planning to assign, then offer him $80k. if youre going to stay in the deal, offer much less.
-my 2 dimes
Re: L/O offer…need advise - Posted by Brian M. Powers(MI)
Posted by Brian M. Powers(MI) on July 07, 2002 at 12:59:55:
i am having a hard time seeing the logic in your proposal matt. if comps show the home to only be worth $78-$80K, and you are proposing he assign the contract, how is he going to get any money selling and $80K contract on a house who’s max value is $80K?
what am i missing here?
BMP
Re: L/O offer…need advise - Posted by Matt KY
Posted by Matt KY on July 07, 2002 at 13:38:41:
by the time a t/b got financing, appreciation will have raised the value of the house. not to mention, t/b’s dont mind paying extra down the road to get into a house quick on easy terms.
but what do i know? im just a newbie.
Re: L/O offer…need advise - Posted by Banks
Posted by Banks on July 07, 2002 at 14:39:50:
Assingn the contract. Assign it for a fee 2500-5000 not bad for a little work
what am i missing here? - Posted by Brian M. Powers(MI)
Posted by Brian M. Powers(MI) on July 07, 2002 at 20:14:29:
you are proposing that he get the house under contract for $5000 above fair market value, and then find someone to pay an additional $2500-$5000 on top of that?
Real Estate For Sale
3 Bedroom 2 Bath ranch in Anytown.
Nice neighborhood, fresh carpet and paint throughout.
Home is nicely priced at $7500 above market value.
Call 123-456-7890
dont expect many calls.
BMP
expect alot of calls - Posted by Banks
Posted by Banks on July 07, 2002 at 20:23:34:
Your dealing with desperate people here. Their paying above market value. What is it 5k? Their not paying the 7500 above market value the 2500 is to purchase the contract. You made a great deal you deserve to sale the contract. If I’m wrong tell me your theory. This is their only way to be home owners. Your looking for people that are cash rich but credit poor
6 of one and a half dozen of the other - Posted by Brian M. Powers(MI)
Posted by Brian M. Powers(MI) on July 07, 2002 at 20:37:34:
if your are selling a contract that is $5000 above market value for $2500 then the end buyer is paying $7500 aboved market value no matter how you dress it up.
can you lease option a home for $7500 above market value? yes, all day long.
maybe your market is different but i dont think your theory works well in reality. when you convince a homeowner to sell you there home on lease option they are doing so because they do not want to be involved with the headaches of being a landlord or with the details of selling a home on lease option. if they did they wouldn’t have entered the agreement with you in the first place.
now your expecting to enter into a lease option agreement with a seller and then go out and just assign that contract to your buyer and collect your fee and be done, leaving the seller to have to now deal directly with your buyer whom he or she doesnt know from adam. sounds great in theory but it is highly unlikely the seller would knowingly enter into an agreement that allowed that to happen.
BMP
Re: 6 of one and a half dozen of the other - Posted by Banks
Posted by Banks on July 07, 2002 at 21:22:27:
You make a good point. You would have to use a seperate contract to be able to assign the home. But You do make a very good point. You would have to explain the advantages to the seller such as top price for the home they wont have to worry about being called in the middle of the night for a broken toilet. Quality tennant. The tennant will take care of the home becasue they consider it theirs. I’m not disagreeing with your points either though. A debate like this is very helpful to everyone though. Do you agree with me that you could sell the home for 7500.00 above market value becasue of the opportuity you bring to the buyer?
Thanks for you opinions
Scott