Posted by Lazaro on June 19, 2001 at 19:55:00:
a. The closing is much faster (benefit for the seller).
The benefit for you is that you get the property at
a VERY good discount price.
b. The benefit for the seller is that he gets some cash
up front and makes more money on the interest of
note. The benefit for you is that you get in with
a small down payment. Then you could sell it on a
L/O with a larger down payment. This would give you
you some money for your pocket.
c. The benefit for the seller on a “subject-to” is that
they get out of the home. This normally happens in a
foreclosure, divorce, second home, or any seller
that is VERY motivated. The benefit for you is
you just take over their loan.
d. If you get funding from both the seller and a
lender the benefits are for the seller are:
The seller gets more money at closing and still
has a note with interest(probably a second). The
benefit for you is that you can get in with VERY
e. On a L/O the benefit for the seller is: The seller
gets some option money. The seller also makes some
money on the rent for the term of the lease. The
benefit for you: can get into the home with little
down, You can do a sandwich L/O. Might want to
read more posts and How-To-Articles for how to do it
f. To my knowledge a L/O is the same as a “selling with
an option.” Lease Option is a lease and then the
you have the option to excercise the option. Refer