OfflineSo I talked with a seller today that has decided he doesn't want to tie up his property for 5 yrs on a lease option and doesn't want to lose control of his property. He said he will do anything I want but just doesn't want to lose complete control of the property. We had a verbal agreement and were getting down to signing the papers in the next day or so but he is nervous about tieing it up for so long.
Do you guys have any suggestions on how to approach the situation?
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Kevin
Kevin: if the seller is in any danger of fore-closure, i would remind him of this.
andrew
Andrew
He actually is not facing a foreclosure he just lives out of town and is tired of being a long distance landlord. I was running the #'s and I am going to offer him a 3yr lease option with the current agreed upon price and the right to renew and if I decide to renew then an extra $10k will be added to the sales price. That way it's not tied up as long and after three years if he or I decide not to go further with the deal I will still have made a around $10k in those 3yrs.
Kevin
Is his asking price near the value of the home or over it?
If its around the fair market value you can do a subject to. I dont want to get into the details but visit Randys journal,he may have it on there for you to copy off of. otherwise read up on it in Deans book.You can give him asking price and offer 5% of your profit upon sale to your end buyer in 2 yrs.
good luck
Richie.
I like Richie's piece about offering the seller 5% of the profit at the sale. should be a little more motivation for him to do this deal...jan
I will be looking at randy's journal tonight. Thank you for the advice.
Kevin
I have done this a couple of times now just so I wouldn't lose the deal. It seams that their eyes really Puck up when I offered this. It made a win win for both of us and cost me no money out of my pocket.
Randy
www.adeptpropertiesllc.com
Well I wrote the seller change to a 1yr lease with the right to renew so I wrote him back and told him my reason for asking for a 3yr lease minimum. Then I also offered a percentage of the profits and he eat it up! Thank you guys so much for the advice. Oh Richie the price of the house is a little below FMV. I'm reading on subject to's and will be adding that to my arsenal.
Kevin