opportunity when there is no equity?

ask for owner finance and show them how they can make money by doing so.
L/O also
Be creative and use your knowledge-see what others dont

how do you owner finance if there is no equity?

you find a buyer who has challenged credit but has a sizeable down payment,monthly payments obviously should be more than current one, and sell for higher price

Was kind of wondering about this myself--knew L/O could be possible solution but not sure why (yes, I'm one of those who always want to know "why" lol). It makes sense now.

Now, what's the best way to find ppl to L/O??? Bandit signs, Craigslist ads, etc?

ppl who rent are the ppl for L/O

Run ads for rent to own and build your list- talk to ppl, I ask ppl all the time, 'do live around here? you rent or own? why do you rent? want to own?
I'll get you in a house in 30 -60 days....fill out this info

so we are not talking about the traditional "owner financing" where they take back a mortgage...we are talking about a sandwich lease?

what happens to the tennants down payment?

#5 was for Michelle

It is "credited" toward their purchase, and comes off the purchase price, and
it's non-refundable option consideration which means you keep it, plus any extra monthly income through their monthly payment. You would setup everything through an escrow server, and they would make the monthly payment to the mortgage co., pay you, and take out their small fee. Their monthly payment needs to be more than the monthly payment on the mortgage, so you can make profit in the middle. At the end you sell the home, which creates the sandwich. The extra income you get from the monthly payment, you also "credit" toward their purchase and it is also non-refundable, and you can keep it. Make sure the tb's option consideration is more than yours between the seller and you.

You can also set it up for a win-win situation for you with the seller and do the same thing with the seller as far as your monthly payments go with partial credits.

I understand how the we win as investors in an L/O, and I understand how the tenant buters win in the L/O but how does the seller win. In an L/O how does the seller win?

I believe the seller wins by selling the property that they are motivated to sell.

one question I have about the tennant buyers down payment. If the seller owes about what it is worth, you as the investor would have to be shure that the tenant buyers payments would pay down the mortgage ballance by at least the amount of the downpayment by the time they are ready to purchase, correct?
Is there a forseable situation where they make a large payment and that amount is not reduced on the principle by the time they are ready to purchase?

Ex: 250K house,
25K downpayment---if this goes to you and the seller, how does it also go twards the purchase price

Add the option fee to you are paying the seller and any improvement funds you may need and charge a higher fee to your new buyer. You keep the extra funds. Your buyers monthly payment should be higher than your payment and you can apply some or all to the purchase. You can check with a mortgage broker who can run a credit check and tell you when your buyer may be able to qualify for the purchase and what they need to do to qualify. That way, you'll know how far out to make the sub lease-option. You can also figure out how much they'll need depending on how much of their payment is going towards the purchase. Hope this helps.

If the seller owes about what it is worth, you as the investor would have to be shure that the tenant buyers payments would pay down the mortgage ballance by at least the amount of the downpayment by the time they are ready to purchase, correct?
Is there a forseable situation where they make a large payment and that amount is not reduced on the principle by the time they are ready to purchase?

thank you ladee

what is L/O I see that used a lot and no idea what it is and google.com isn't helping me with answers.

nvm I figured it out, just saw the link on the left for terms gonna go do me some more learning ^_^

That would be the short abbreviation for Lease Option exit strategy.

Hey guys I keep asking this question but haven't received a answer yet. Please help what is the difference between birddogging and wholesaling?

Trina