Posted by Bob Taylor on November 22, 2000 at 17:25:23:
Your objective is not to collect all the down payment money coming in the monthly lease payments, your objective is to make it easier for the T/B to make the down payment. They kind of have the down payment on the “installment” plan. It would be easier for most people to come up with $5200.00 rather than $10,000.00 at closing.
Good luck, and, good buying/selling,
Bob Taylor…Alabama
Question For Lease Option Pros… - Posted by Jay S.
Posted by Jay S. on November 22, 2000 at 16:07:46:
I must be missing something about monthly credits for L/O!
If T/B signs contract for 100K home, puts 10K down, rent is 700 monthly, 200 a month credit towards purchase price. Lease is for 12 months with 1 renew. 24 months total!
200 x 24 = $4,800 + $10,000 down = $14,800 equity built up in 2 years. if lenders will lend 80% of value (in this case $80k), 100k - $14,800 = $85,200…the T/B is still $5,200 short of what lender will lend? WHAT AM I MISSING???
Seller facing foreclosure:
House appraises for 130K. Seller willing to L/O for 112K selling price. Buyer puts down 12k and takes over pymts of $955.00 w/ mortgage balance of 100k. Seller has to have the 100k to pay off mortgage, how does he offer buyer monthly credit amount?
Thanks for any input…it’s appreciated!!