Not sure if I understand this right. You are putting a house under a lease option, and you are moving into it, and want to know if you will make a profit doing that?
I don't know how you would, but is this what you are asking?
Sandi
Have to get the house for a lot less than what it is worth and find a bank that would let you refinance it right away and pull the cash out of it and into your pocket. If the owner is doing a rent to own he either owes more than it is worth and he doesn't want to do a short sale or he is an investor like you offering a house to a person who cannot get a loan from a bank.
Please fill out you profile and read all of Deans books and read the forums on this website before you ask too many questions. We are here to help but we would like you to help yourself as mujch as possible. There is all the info you will ever need on this webstie so just look around and learn and you will do great things!
"In order for me to think outside the box, that would require me to acknowledge that the box actually exists. In my world, there is no box."
~Matt Larson~
I'm not putting a house under lease option.I would like to move in to a lease option property.How can I use the DG system to profit in this process.I would like to eventually buy this property with little or no cost to me.Is no no money down process an option?
Lane has a good answer. Is this another investor that wants to make money on the home, or is this the owner?
Not knowing the numbers and value of the home, it is hard to say if you can buy it with little or no cost to yourself.
I doubt you could put little or nothing down without making a decent monthly payment. They are doing this to put money in their pockets.
Maybe someone else can explain it better as I never did a L/O. But just based on this info, I don't know how you can.
Will be watching to see what other advice someone can give.
Have you done any deals yet?
Sandi
You can not move into a L/O house with no money down, pay rent, and make a profit yourself. Your question does not make any since. We need more information about the deal you are trying to make.
Jim is right. You would have to come up with a down payment and move into the the house paying all utilities, taxes, ins and maint. What you are trying to do is called in most classifieds as a Rent To Own. As the renter you will probably be paying an investor, and paying a higher price on this house.
Do some research before you jump on this. You could be way in over your head, especially if you try to refi the house...Jan
I would not try to buy a house from another investor. You will not make any money on it. They will make money from you. You need to find a house that somebody is losing to foreclosure and they have equtiy in. This is not just any seller either, it is someone who is desperate to get out and just wants to sell it for what they owe on it so they don't get behind on anymore payments. Get a house for at least 70% of what it is worth. NOT I repeat NOT 70% of what they are asking for it. 70% of the FMV Fair Market Value. Then once you close on it, go find a bank that does non-seasoned refinances and refinance it for 75% or 80% depending on what the bank allows. You put the 10%-15% in a seperate bank account and make your new house payment out of the equity you just pulled out with your refi. Thus giving you time to build up a savings and pay offf other bills with your paycheck from your day job.
You will not make any money if you want to live in a lease option house unless you get it cheap enough to do a refi on when you buy it. The price has to be at least 70%of the value to make any money on it.
Most banks will only do a 75% LTV. There are a few that will do 80% LTV
"In order for me to think outside the box, that would require me to acknowledge that the box actually exists. In my world, there is no box."
~Matt Larson~
Just watch out if you are doing a Lease Purchase you are Leasing to purchase the home A Lease option will give you an option to purchase if you choose. but either way no profit to you right now. Maybe later if there is some eqity.
Offline
Not sure if I understand this right. You are putting a house under a lease option, and you are moving into it, and want to know if you will make a profit doing that?
I don't know how you would, but is this what you are asking?
Sandi
Have to get the house for a lot less than what it is worth and find a bank that would let you refinance it right away and pull the cash out of it and into your pocket. If the owner is doing a rent to own he either owes more than it is worth and he doesn't want to do a short sale or he is an investor like you offering a house to a person who cannot get a loan from a bank.
Please fill out you profile and read all of Deans books and read the forums on this website before you ask too many questions. We are here to help but we would like you to help yourself as mujch as possible. There is all the info you will ever need on this webstie so just look around and learn and you will do great things!
Click Here To Buy Deans New Book!!! http://www.lanemccaw.bookimentioned.com/b/
Visit my website:http://qchomebuyers.weebly.com/
Visit My Facebook Page: http://www.facebook.com/#!/qchomebuyer
Visit My Linkedin Page: http://www.linkedin.com/pub/the-1-fast-ca-h-home-buyer-in-the-qc/28/b79/...
"In order for me to think outside the box, that would require me to acknowledge that the box actually exists. In my world, there is no box."
~Matt Larson~
I'm not putting a house under lease option.I would like to move in to a lease option property.How can I use the DG system to profit in this process.I would like to eventually buy this property with little or no cost to me.Is no no money down process an option?
Lane has a good answer. Is this another investor that wants to make money on the home, or is this the owner?
Not knowing the numbers and value of the home, it is hard to say if you can buy it with little or no cost to yourself.
I doubt you could put little or nothing down without making a decent monthly payment. They are doing this to put money in their pockets.
Maybe someone else can explain it better as I never did a L/O. But just based on this info, I don't know how you can.
Will be watching to see what other advice someone can give.
Have you done any deals yet?
Sandi
Sandi, thank you for the response.No,I have not done any deals yet, Iam extremely new to realestate. I recently purchased Dean's books.
I'm researching who has placed the house on the market( owner or investor).
You can not move into a L/O house with no money down, pay rent, and make a profit yourself. Your question does not make any since. We need more information about the deal you are trying to make.
http://kendrickpropertymanagement.com/
http://rochesterapartmentrentals.com/?page_id=10
Jim is right. You would have to come up with a down payment and move into the the house paying all utilities, taxes, ins and maint. What you are trying to do is called in most classifieds as a Rent To Own. As the renter you will probably be paying an investor, and paying a higher price on this house.
Do some research before you jump on this. You could be way in over your head, especially if you try to refi the house...Jan
I would not try to buy a house from another investor. You will not make any money on it. They will make money from you. You need to find a house that somebody is losing to foreclosure and they have equtiy in. This is not just any seller either, it is someone who is desperate to get out and just wants to sell it for what they owe on it so they don't get behind on anymore payments. Get a house for at least 70% of what it is worth. NOT I repeat NOT 70% of what they are asking for it. 70% of the FMV Fair Market Value. Then once you close on it, go find a bank that does non-seasoned refinances and refinance it for 75% or 80% depending on what the bank allows. You put the 10%-15% in a seperate bank account and make your new house payment out of the equity you just pulled out with your refi. Thus giving you time to build up a savings and pay offf other bills with your paycheck from your day job.
You will not make any money if you want to live in a lease option house unless you get it cheap enough to do a refi on when you buy it. The price has to be at least 70%of the value to make any money on it.
Most banks will only do a 75% LTV. There are a few that will do 80% LTV
Click Here To Buy Deans New Book!!! http://www.lanemccaw.bookimentioned.com/b/
Visit my website:http://qchomebuyers.weebly.com/
Visit My Facebook Page: http://www.facebook.com/#!/qchomebuyer
Visit My Linkedin Page: http://www.linkedin.com/pub/the-1-fast-ca-h-home-buyer-in-the-qc/28/b79/...
"In order for me to think outside the box, that would require me to acknowledge that the box actually exists. In my world, there is no box."
~Matt Larson~
Just watch out if you are doing a Lease Purchase you are Leasing to purchase the home A Lease option will give you an option to purchase if you choose. but either way no profit to you right now. Maybe later if there is some eqity.
Jay C
Jay C