Need advice on deal - straight option - Posted by Ryan_MA

Real Estate Investing
#1

Posted by waynepdx on July 09, 2002 at 10:15:47:

Great job at finding a lo risk first time deal.

Yes you can do any of those strategies you described.

As long as he gives you an option for 3 months and you do not have to cover the payments, well that is great.

If you are out a couple of hundred bucks for the advertising, oh well. It is only 200 bucks. Its better than thousands.

These are the type of lease option deals that I go for.

If you do get a buyer, then factor into the price of the home the appreciation for the next year minus say 2k. This would increase the price of the home for your t/b but also give them more equity when they exercise their option to buy.

As far as finding someone to buy and then carrying a note. Well it would be monthly cash to you that you get for nothing except the time you put into making the deal.

And if they default you can start foreclosure on the home.

You can also just find a buyer and then assign them your position for say 10k. That way you get some quick cash and are out of the deal completely.

#2

Need advice on deal - straight option - Posted by Ryan_MA

Posted by Ryan_MA on July 09, 2002 at 10:05:36:

I recently put up some bandit signs to see if I could find any motivated sellers in my area and I got my first call today. An owner of an owner-occupied 3 family called me today and told me he wants to get rid of his house. I?m familiar with the area because last year I did a lot of research on the multifamily properties when I was looking for one in the area. He bought the property for 200k two years ago with 10% down - that’s what he told me. I just found the deed and he actually paid 190k. He told me he wants to get 200k for the property and now its worth at least 220k. The property values have appreciated over 10%/year in this area and I think it could even appraise as high as 230k. He told me he would sign an option agreement for 3 months for 200k no problem. I was thinking about trying to find a buyer for the house using the paper and signs. I don?t really have anything to loose except the couple hundred bucks for the ad. Do you think I should try this? I guess even if I sell it for 205k I still make money? How does the assignment work with lenders? Instead of assigning it, can I do a double closing, with my buyers money? I?ve got the idea down, but not the mechanics. Could I sell it for ?200k? and put a 20-30k note on the property so it seems like I?m doing a little seller financing and just collect monthly payments? I’d like to explore all my options here - I don’t mind hanging onto a note and collecting interest, but it would be nice collect a nice check for his 2 years appreciation. Any advice would be greatly appreciated!! Thanks - Ryan

#3

Re: Need advice on deal - straight option - Posted by bob

Posted by bob on July 09, 2002 at 16:50:43:

Ryan are you from Massachusetts?