Re: Need Help ASAP! How do I work this deal? - Posted by Karl (Oh)
Posted by Karl (Oh) on October 25, 2000 at 01:09:39:
Tony is right, this isn?t a Lonnie Deal. But to me it looks like it could still be a good deal. In my market 3 bedrooms are very hot. You could possibly do this on a lease option.
If that same home was in my park with those numbers I would jump on it. But I don?t know your market. You?ll have to check it out. First I would find out what the appraised value was on the home, or NADA value, to determine if there is any equity in the home. If its upside down, probably don?t want to do it. If there was some equity, I?d assume the loan, or lease/option it from the seller. Then I would advertise it as a lease option (or land contract as everyone around here calls it), collect a couple grand up front from a buyer as option fee, lease it out for several years with an option to purchase down the road. Collect a monthly lease payment of say $300 or more, whatever your market will support, as long as its more than your payment. Part of this payment to you could be rent, and part of this payment is applied to the purchase price. Several years down the road your leasee either exercises the option or walks. If they walk, lease it out again. This all assumes the park will let you do any of this. Check this out first, of course.
Perhaps if this seller is motivated enough they can be talked into paying the $1k assumption cost. Or more.
This is a quick and dirty explanation of how the lease option works. Before doing one, I?d order Ernest Tew?s ?Getting Rich? program, and maybe Lonnie?s home study course. Ernest explains how to do net lease options and provides all the necessary contracts and paperwork, and Lonnie gives some good tips on his study tapes on how to do a rent to own deal. For heaven?s sake, don?t rely on my explanation to put this deal together. Get more info from these two experts.