OfflineI had an awsome idea. I found 4 properties in an excellent rental area near two big local colleges. The on campus housing is already full so parents have already started looking to rent for thier kids. Not only that but local rentals owned by timeshare companies or whatever they are rent out for $1900 a weekend for a 1bed unit durring football season. All the area hotels book solid durring this time. I have never seen anything like it till we moved here.
Well my idea was to partner up with someone who had good credit, I lock up the properties from the buyers, and turn around and resale to my partner for $20,000 - $30,000 more than my lock up price and voila! Anywhere from $40,000 to $90,000 to my partner, and I get the properties I wanted. I would just sign an agreement with them be it lease option, rental, subject to, whatever it had to be and pay the payments on the loan. One house is $35,000 so I figured the loan could be $55,000 - $65,000. Then after closing, I give my partner the cash that's left from closing and I get the property I wanted! Win win. One of the houses is a 4plex, that currently brings in almost 3,000 and after taxes, mortgage payments, and insurance will be a positive cash flow of $2075.00 a month. One is a short sale property that will be for sale for about 54,000 or 59,000, and the other is a 3 or 4 bedroom house that was just fixed up. That one is $100,000. I thought this is areally cool way to do partner deals, but the two people I did know, one just bought a house, and hasn't closed on the sale of his house yet, and the other one is kind of young and he thinks that could only work in a perfect world. One of my friends thinks that is a unique way to think outside the box reguarding financing. Well fellow dger's what do you think about it?
Well How is This For An Outside the Box idea?
Posted on: Thu, 07/15/2010 - 21:50
Well How is This For An Outside the Box idea?
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- by rbailey1962
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Who's providing the down payment on the properties, you or your partner?
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
If their credit is good enough you don't have to put anything down.
could use transactional funding if it's wholesale deals
would work. I was trying to figure out steps-ie : A-seller B-You(investor)contract A+B=purchase contract. Then B(you) and your end buyer C do contract. Then C ( end buyer) becomes seller and you become end buyer with a lease option ? A+B contract = B+C contract= C+B(you as new end buyer/) lease opt? Seems it would just be one more (new) purchase contract with end buyer(you).
Would you give your "C" (1st end buyer contract) the monies you made with there credit as a down payment then the rest in lease opt. So you would have control over property? Please keep posted, I need to learn outside the box..
LOL^^^ I was trying to do the same thing in my head! Seems like it is a great plan though. I just got hung up on the down payment issue because I didn't think you could buy without it, even for transactional funding the ultimate end buyer c needs financing once the a to b portion is done. Wow, I'm still confused, but learning!
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
Would you give your "C" (1st end buyer contract) the monies you made with there credit as a down payment then the rest in lease opt. So you would have control over property? Please keep posted, I need to learn outside the box..
Actually I would give them the money for letting me use their credit, then pay the complete loan myself, costing them nothing and giving them continued good credit.
sometimes buyers do need a down, but sometimes there are ways around it, especially if you have great credit.
like it would work great..Keep posting. then you can do a step by step for us.Thanks again..
Trust me I am working on it everyday. I have one who says they will do it but we don't know if their credit is good, and I am working on one who has perfect credit! It's taking time though, but I am very patient