OfflineJust closed on a L/O and the seller gave us a check for $24,000 to take over the property. We are L/Oing it for 10 years and when we exercise our option we will pay whatever is owed on the house only.
We are planning to option it with a $4K option fee and should cash flow $175/mo.
Out of the $24,000 we will paint, put in new carpet, landscape and do a few repairs that should all come to about $5,000.
This is really FUN!!!
Karen
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So what's the upside for the TB?
I have a lease option with a seller.. well, my partner and I do... The payoff is about 72K. He is asking 80K. We tried to sell it, but was getting no where so we decided to do the lease option. Here is how we have it set up. Purchase price is $80,000 (AS IS) at $1200 per month with $9200 down (this is what he wants to walk with) for 36 months. We are trying to do a sandwich lease option for $15000 down and $1500/month. The house needs approx $15k in work and is in a great location and it's ARV is $150K. We have advertised it everywhere and have had no luck. The last person I showed it to really liked the main floor, but with the basement, he said it was too big. I know we need to target retail buyers for this, but we are running out of time. What do you suggest we do in terms of advertising or do you think we should just go to the owner and tell him unless he will take the payoff, there is no other option? That way we could do a subject to. Any suggestions on this?
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Congrats Karen, Well done.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
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They get a house...
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
I will PM you.
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
"They get a house..."
FMV is no deal. One can pay retail any day of the week. But what makes your house a better deal than they could get if they just rented while they repaired their credit and not risked $4k in non-refundable option consideration with a lengthy contract. A main selling point for a TB is locking in a price today that may have a chance of profiting from some future appreciation. What is the advantage for a TB to get involved in a lengthy contract at an inflated price while risking option money?
The upside for the T/B is that they are actually "buying" a house, just in a different way. This gives them the feeling of accomplishing what they want to do anyway.. buy a house, not rent one. They have put down some money to apply to the purchase price, they are getting credit each month applied to the purchase price so they are on their way to home ownership NOW instead of waiting 2-3-4 years or more to build their credit back. Plus they don't have to go to a bank for financing NOW. So instead of throwing away $400-$600/month renting, they are actually putting some money toward their purchase each month. In the end, when they exercise their option to purchase, they have made a good down payment on the house so the purchase price will be decreased by that amount. It's a win win for everyone! Karen might have more to add but that's my 2 cents.
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
way to go. Keep your train rolling girl wooohooo !
Donna
Awesome job on this deal! Way to go!
Ryan