OfflineOur realtor have two prospect customers (two different families) that wants to own a house but they can't buy anything now because of the bad credit. They are working on fixing their credit but in the mean time they would like to move to a house that they like and want to buy; they want a Lease to Own.
Our realtor called us to see if we were interested in doing a deal with them. I own two houses so I will need to come up with 20-25% downpayment to buy a house. If I do not have the 20-25% downpayment or if I do not want to use my money, what kind of deal I can make with them. Should I ask them to provide the downpayment and then profit only from the positive rent cash flow and equity on the house after the sale (in one year or more)?
Any advise will be greatly appreciated.
Fernando
Hi you may want to try a lease option, give it some thought, wishing you all success, Jim
jbischoff
and be a "Problem Solver"- just make sure you dont create a problem for yourself
I dont quite understand if you are selling one of your 2 houses or trying to buy one to get these ppl in another house--why would you have to come up with 20% down unless you're trying to buy another house?
However if your properties have equity and you could try HELOC or wrap around mortgage if needed
1. You can up the selling price,L/O if they have a big option payment(non refundable if they dont exercise the option within time frame)and charge above premium rent rate
2.owner finance deal with large downpayment and high interest rates for 2-5yrs with balloon payment due
3. wait on qualified buyers
just some options - but still unclear what youre trying to do
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
I mentioned the houses to let know that if I want to buy another house to work with this people I will need to come up with 20-25% considering that I am an investor.
So to recap what I am trying to do is buying a house for them but not having to use my money for the downpayment. I do not want to tie my money into rental properties; I rather flip and do quick cash now. I want to do a Lease to Own with them but wondering if I can use their money as down or if there is any other kind of deal I can do.
Thanks
If you are doing a sandwich lease with a motivated seller, you don't need a down payment, maybe give the seller some moving money at most. You don't have to buy the house to do a lease option, just control it. Use a portion of the option money the tenant buyers give you to get some money to the seller if needed.
A sandwich lease option is what you want to do. I'm sure that your realtor is looking at you to get a new mortgage with that 20-25% downpayment requirement, and his cover his commission of course...agents have to eat too.
Find out what the client with bad credit has available for a downpayment. If the current owner of the property is motivated enough, complete a lease option agreement/contract to get the property from the current owners, then complete another lease option agreement/contract for the property with your client(tenant/buyers).
You will give some or all of the downpayment that you get from your client to the current owners. Just work out your spread so you make some money in the beginning, some money monthly, and good money in the end. Greg Murphy has made a killing with just this technique.
Think less, Do more, Get results. - Dean Graziosi
http://www.rcmfunding.com
http://www.StopForeclosureOptions.org
http://www.RichardsCapitalManagement.com
This property is a foreclosure.They already have the cash for the downpayment but they don't qualify for a mortgage, that is why our realtor gave us the sugestion of buy another house and they can rent it to own. I was thinking I might get their money to use it for the mortgage downpayment, but not sure if this works or how this can be done in the correct way.
Any advise?
Sandwich lease sounds like the way to go but, what about if the property I am looking at is bank owned?
Thanks in advance for the feedback.