Posted by Robert on December 11, 2000 at 18:15:55:
Put an ad in the paper that says:
No Bank Qualifying - Seller will finance. Gorgeous 3 Bedroom 3 bath home with jacuzzi… Move in tomorrow!
That should work.
$250K house, my 1st deal. Help!!! - Posted by Clinton
Posted by Clinton on December 11, 2000 at 17:17:28:
Hello REI,
Okay, i’m talking to a guy who wants to sell or lease option his lake home. The history is he got married and promised his new wife he would move into her house, so her kids won’t have to move into new schools.
Anyway, It’s a great house 2600 sqft. in the “suburbs”, 3bed/bath/jacuzzi and on a small lake (lake front).
Here are the numbers.
He’ll lease/option the place for $250K, $2100 month for 21 months. He also wants $5000 deposit and no payments till Feb 1st.
To me the deal sounds okay, but I’m no Joe Kaiser or Bill Bronchick. I mean, I get into the house with a 2% deposit and only have to make the PITI payments. The fabulous lake house needs no work and others are selling for about $270.
My fear is in retailing the house or sub-leasing this place. How do I find tennant/buyers?
I really don’t know how. I never tried.
Do you pro’s place print ads or call realtors or what?
How do you move a house in December or January?
Tell me and I will listen.
Thanks
C.
Re: $250K house, my 1st deal. Help!!! - Posted by B.L.Renfrow
Posted by B.L.Renfrow on December 11, 2000 at 22:07:44:
As an investor, you shouldn’t be paying a deposit. If the seller wants some money up front, he’s probably not terribly motivated. Sounds like a regular rental to a regular tenant. Don’t forget, he’s got a major problem, and you are offering a solution. Nevertheless, if you feel it’s worth pursuing otherwise, try to structure the deal so the $5000 is considered rent paid in advance for the first 2.4 months…AND rent payments not to begin for 60-90 days or until you find a qualified T/Ber.
So, doing it this way, your payments shouldn’t start until Feb. 1 at the earliest anyway, then with the $5k applied to the next 2.4 months rent, you’ve got until spring to find a T/Ber. And if you find one earlier, which you should, it’s gravy in your pocket.
Of course, the usual lease option caveats apply: verify the mortgage balance, PITI payments, no other liens, etc. And have your payments go directly to the lender, or at least through a third-party…NOT directly to the seller.
Brian (NY)