Offline"If they want to lease purchase, can I leave the rent the same, give them 6 mos - 1 yr. to come up with the down payment, or should I figure in additonal monthly amount of money to go towards the option payment in one year. (we are asking for 10%, $5,000) Then, we would finance for them for 2 years (amort. for 20) with a BALLON. This would give them time to establish credit, etc."
What those the phrase BALLON mean?
I don't get it...
__________________
In this example the deal is financed for 2 years and then becomes due or ballons at the end of the 2nd year. Thus, the final payment is called a balloon payment because of the large amount due at the end of the 2nd year. In this example, they would probably establish creit and refinance at the end of the 2nd year when the mortgage note balloons due. I hope this helps. Believe and Achieve!
- Joe
YOU TUBE CHANNEL - Follow me on my You Tube Channel at Joe Jurek Real Estate Investing Adventures
https://www.youtube.com/channel/UCiko62V79zLKX_owbirAYNA
TWITTER - Follow me on Twitter at Joe Jurek CPA
Joe Jurek CPA
https://twitter.com/JoeJurekCPA