Lease Option Options - Posted by Jay

Posted by Bob at Get the Deed on December 20, 2001 at 12:59:00:

Hi Jay,

When the seller wants to get out with no payment from you, then you might want to consider buying the home subject to the mortgage.
You don’t assume the mortgage and that might bother the seller. However, we have little trouble getting homes subject to the mortgage.
Having the home occupied by a renter might be a little cause for concern. See, we want the home occupied by a person that has paid a down payment to us and has agreed to buy the home during the term of a lease.
All the maintenance is the tenants and they forfeit the down payment and any other credits if they miss a house payment or don’t buy the home.
This is a brief summary of how we buy homes and it works well with homes that are above the cheapest homes around. You see, you want your tenant to have some discretionary income so that they can always make their house payment and not have to worry about the normal fluctuations in their living expenses. Our goal is to get them to buy the home, not for us to evict them.
Hope this helps,
Bob Meister

Lease Option Options - Posted by Jay

Posted by Jay on December 19, 2001 at 15:57:48:

I am fairly new at this so I wanted to get any creative ideas from Ed or others. I have a seller who wants to get out of a house now for what he owes. He has an assumable mortgage. His current renter wants to buy the house but can’t turn around credit for 6 mos. to a year. I could buy the house and do a lease option to the current renter but obviously I would have closing costs and down-payment eating up profit. Are there any other options? I realize that assumables require the owner to occupy so that doesn’t work for me. Thanks in advance for any suggestions.