Posted by Jim IL on February 26, 2001 at 18:44:27:
Batpro,
Without knowing exactly what you want to do, or accomplish, it will be hard to tell you what to do here.
I’d also want some more info on the property and the sellers situation.
Fmv of the home?
Tenants? Rent amount?
Current?
any repairs needed?
Will tenants leave?
Market rent for the home?
And, what does the seller need from the sale of this home?
As far as L/O being hardly heard of where you are, and contracts being common, then there is your in.
Explain a Lease Option in terms, not by name, if that is what you want to do.
Tell the seller that you will set a price now, make payments, and when you buy, there is a sort of balloon payment, just like in a contract for deed.
Just make the L/O seem like an installement sale, and then use L/O paperwork.
Joe Kaiser talks about this in some of his writings.
I’m sure he puts it much better than I do.
As far as “how” you’ll finance the other home you already have an accepted offer on?
Isn’t it a little late to decide “how” to close this one?
What was your plan when you made the offer?
What is the place worth now?
After repairs if any are needed?
Is the price of $35k a good LOW price?
Anyway, good luck to you, just wanted to offer my $.02,
Jim IL
Need advice on type of offer to make - Posted by Batpro
Posted by Batpro on February 26, 2001 at 18:18:48:
There has been a 3 bedroom house for sale for 1 year in my town in Northern Minnesota. House is in good condition but is being sold as is. It was listed with a realtor for $67,000 for most of the year. The owner (lady) is old and moved to Arizonia. She is now very motivated and recently dropped the price about 1 month ago to $48,000. The realtor told me that there is currently a renter in there on a month to month basis. He also told me that the lady is very motivated (even states this in the MLS book) and will look at any offers. The realtor said no offers to date have been made on the property. He also thought that she did not have a mortgage on it.
This house is also zoned commercial and sits behind a dentist office off of a main street. The realtor said that is why he figures it hasn’t had any offers because people don’t want to be that close to main street.
I was thinking of making an offer for around $32,000 with conventional financing and with seller paid closing costs of closing costs of $2000. However, I doubt this is the best methodology.
I read about lease purchase, wrap mortgage, seller carry backs, CD’s, etc. It is all very confusing. I don’t know what the best option is??? Please advise!
My situation:
own home with $42,000 loan - my home appraises at $70,000
credit score 786
monthly debt $700
yearly income $34,000
Currently have another accepted offer on a house for around $35,000 (not sure what is the best way to finance this one).
I am open to making some quick cash or monthly cash flow.
Up here in northern minnesota lease purchases are unheard of but CD’s are common.
Adam
Please give advice on what to do. The property should appraise around $60,000.