Purchase price based on... - Posted by LeonNC

Posted by JasonTX on December 27, 2000 at 14:33:50:

When you say," had they bought it at 11%" are you talking about your purchase price or the higher purchase price that you are optioning to them?

I’ve read some posts that talk abnout buying properties for 80% of FMV and Optioning them at 3% over FMV and then figuring payment at 11% interest. Is this what you are doing? You may want to look in the archives for the name Merle. This gentleman has been doing that for a number of years. He does long leases with his t/b (3 years).

Hope this helps,


Purchase price based on… - Posted by LeonNC

Posted by LeonNC on December 27, 2000 at 24:57:18:

Is this good or bad strategy? My intent is to buy and lease option on the backend. Rather than base my purchase price on what I think I can rent it for…I’ve been basing my offers on what the tenant/buyer’s payment would be had they bought it at say 11% interest.

This does not include all the other expenses that I’m taking into account I’m just using this as a starting point. I guess I should take into account what it would rent for too. Good or bad?