Posted by Tom(Al) on July 02, 2002 at 22:49:34:
Bill, This was my plan: Offer 85 or 90k lease option,0 down,beginning her first payment in 2 months of 685 for the next 10 months with the right to renew for at least 2 one year terms. Exit: sell on a lease option for 105k with 4000 option deposit to me.800 per month rent(depending upon market rent) Profit: 4000 up front 115 monthly spread 10 to 20k when tenant buyer gets a loan and cashes seller out. does that sound like a deal or is it not worth 100 mile distance?If not, should I contact an investor close to her housse…All advice and opinions are very much appreciated.Maybe I am too anxious to get my first deal…Please let me know what you think…Thanks in advance
My first potential deal -Advice needed - Posted by Tom(Al)
Posted by Tom(Al) on July 02, 2002 at 16:21:02:
I have listened to LeGrand’s L\O,Wholesale,and subject2 courses recently but have not made my first offer yet. I got a call from a seller who has a like new, 3 bedroom 2 bath ,1350 sq ft. house about 100 miles from where I live.The house has been vacant and listed for the last 10 months.According to her, she can get out of the listing upon request.She has only owned the house for about a year. The house is listed for what she paid a year ago,98k.She told me she wants to sell quickly and will take less than asking price.I forgot to ask what the loan balance is but I do know the payments are 685 per month and are current. Her primary motivation seems to be debt relief because she is living with her boyfriend in his apartment and wants a house in the Birmingham area which is 100 miles from the house she has listed. I wonder if I should try for L\O or the deed(she is credit conscious).If I L\O will that help her qualify for another house?How does she prove someone else is making the payments?Is it a bad idea for me to do a L|O on a house that is 100 miles away? What would you all do in this situation?I really want to do get my first deal!By the way,I am not familiar with the market in the area of the house but she said the house apraised for 98k a year ago.
Re: My first potential deal -Advice needed - Posted by TC
Posted by TC on July 03, 2002 at 03:33:04:
In situations like this, I’d do my homework and due diligence,
-Get ALL your figures first
-If, she needs U more than U w/her,get a better $ price
-bcuz of distance, I’d unload QUICKLY to owner/occupant w/small dwn.
"Small dwn $______, NO banks… NO credit… NO qual…
I think U get the picture, Remember…Don’t be greedy.
Retail prices are not deals. - Posted by Bill
Posted by Bill on July 02, 2002 at 21:09:21:
This looks like a retail price. And, also 100 miles away.
Doesn’t look like a deal to me. You can find a full price retail deal right on your own street, if you want to.
Just out of curiosity, how do you plan to make any money on this if you do buy it?
Re: My first potential deal -Advice needed - Posted by GL(ON)
Posted by GL(ON) on July 02, 2002 at 19:11:18:
It sounds like the price is too high and it is too far away. I wouldn’t consider it.
You can do better if you keep looking.
Don’t do deals like this especially as a beginner, you can get sucked in and lose your shirt.