novice needs help w./ a deal - Posted by Richard Burton

Posted by Walt on June 15, 2002 at 16:48:34:

This deal makes absolutely no sense to me except the option of leaseing for $1100 and renting for $1400. After the 2 year option, take your money and run.

novice needs help w./ a deal - Posted by Richard Burton

Posted by Richard Burton on June 15, 2002 at 15:20:12:

I have a motivated seller, not sure if the numbers add up to a deal.

I am looking at a 3/2.5, owner is asking 179,000. Has a 125K first and a 40K second and wants 10K out of the deal.

He is moving across country and has had problems selling. He told me he is flexible & motivated, I think enough to forego his 10K profit. I can’t do a subjet to because the second is a home equity loan.

His monthly payments are $1700, comparable rents are about 1400. he would consider leasing it to me for about 1100-1200 per month with an option to buy in two years

any creative ideas ?

thanks

Richard

Re: novice needs help w./ a deal - Posted by MicheleCO.

Posted by MicheleCO. on June 16, 2002 at 10:54:09:

Richard, is he going to pay the difference between the mortgage payment and the lease payment you are giving him? Why is willing to give you below market rents? What will your option purchase price be at the end of two years? Something seems weird here. Just make sure you protect yourself. As for the 2nd, not sure it makes a difference when doing a subject-to. Can somebody pleas explain? MicheleCO.

FMV??? - Posted by Donald

Posted by Donald on June 15, 2002 at 17:18:42:

Richard

179k–asking
165— in liens
What is the FMV here???

Donald