Doug, You need to qualify the tenant/buyers (downpayment, job history and pay, credit). Then figure out how to proceed with these buyers.
Secondly, find out what the story is on the house. Is it a deal or not. What’s the FMV? What are the payments? Is it assumable? Does it need any repairs? Are there any other leins? What are the backpayments? Have you done a preliminary title check? etc. If its a deal, figure your stadegy and tie this property up. Who you choose to sell to is your choice.
Lastly, I’m sure there are alot of married deaf couples looking for a home or apartment. However, as much as you want to help people in their situation sometimes its not possible. A year or so back, same situation, deaf couple, good job as a trades man, but terrible credit. The credit beaura wouldn’t even issue a Score. The bottom line is I wanted to help but it just didn’t makes good business sense. The best I could do for these poeple was to tell them to seek professional help on fixing their credit.
I recently showed an apartment of mine to a couple but rented it to someone else. The couple asked me if I had another place or knew of somewhere, they are looking for a 3BR. I know of a house on the market that sold for 70k a few years ago and the asking price now is 58k.
First, I think the house may be a foreclosure and if it is, is it possible to L/O it and then sublease? Or would you have to buy it outright, no L/O?
Second, this man and his wife are both deaf so I think that’s why they still rent. I know this man has worked at his present job for a long time, and it’s a good job, so could I sell it to him with owner financing if I only had an option on it? What about if I was buying it from the bank could I resell it to him with owner financing and continue to pay off my mortgage on it and pocket the cash flow?
I know these are basic questions but I’ve never done one of these before. Thank you all for the help.
Re: Basic sandwich L/O question - Posted by B.L.Renfrow
Posted by B.L.Renfrow on April 05, 2000 at 20:13:34:
I’m not a big fan of doing a sandwich L/O when the property is in, or headed for, foreclosure. That defeats one of the main advantages of the sandwich L/O, which is no (or very little) cash out of pocket to get into the deal.
Your best bet, if the deal makes sense otherwise, is to figure a way to get the deed, probably via a subject-to deal.
Once you have the deed, you can lease-option to your tenant/buyer, sell on a wrap, create a note, whatever makes sense.