Posted by Natalie Smith on February 24, 2005 at 09:14:52:
If I understand you correctly, you want to lease option it from him and then lease option it to someone else?
You can’t get the 2nd to do a short unless you buy the property from him and pay them off. Maybe you can get the 2nd to sell their note to you at a discount? Even so, the owner is probably not going to pay anything on it…remember, he’s in foreclosure.
Even if the 2nd went away, the deal still looks way too skinny to me. I don’t see a profit anywhere. Getting someone in there on a lease option is a good idea, but you will be putting money out of your pocket that you might not get back.
I think your creativity is good, but that this is not the right deal.
I am working on the following deal that is in forclosure.
1st loan, started @ 33,000 currently 37,000
2nd loan, 10,500
Property comps: $48,000
The 2nd said they would be willing to deal if I could get the homeowner to contact them.
I am thinking I will tell the owner that the most I will get into the deal is 5,000 and then I will take over his payments until I find a buyer. Basically anything above and beyond $5,000 to catch up the first and whatever the 2nd accepts for a short, he, the homeowner will have to pay or no deal. So if the catch up is 5,000, then whatever the 2nd agrees short is his responsibility to pay. Then I find a lease option buyer to move in and make his {the owners} payments, and some to me, untill they buy it and cash him out and get me a few grand. I have not done a lease option deal before or ever bought a property in forclosure so I am asking if my aboved described transaction makes sense or no?