Deal suggestion.. - Posted by Thomas

Posted by Tim Fierro (Tacoma, WA) on February 08, 2002 at 22:12:04:

If I understand this correctly: The seller is paying an owner financed deal, and they will L/O to you, and you will L/O to another. Sounds very interesting. Make sure if you do this that your L/O to your T/B does not allow another assignment. :slight_smile:

Did I just misread your post?

Deal suggestion… - Posted by Thomas

Posted by Thomas on February 08, 2002 at 16:15:50:

I am about to go look at a house with 4 bds 2 ba that I can get at 36k where comps are 65k - 75k.

The current owner has owner financing and they will let me just give them the payment every month…
Lease option?
Any special clause?

Re: Deal suggestion… - Posted by Glen SoCal

Posted by Glen SoCal on February 08, 2002 at 21:15:44:

Some things to think about:

Is the current owner buying from a seller who is financing the sale, or is the seller the owner and offering owner financing?

Lock it up with a contract, check comps., evaluate rehab costs, check title, etc.

If it’s a subject-to, make your payment to a third party who will then make the loan payments, ins., taxes, etc. If the sellers do not own the place fee simple, don’t make your payments to them directly.

Sounds like they already offered a deal. - Posted by Eric

Posted by Eric on February 08, 2002 at 17:12:04:

From what you said in the post, it sounds like they already offered you a deal based on the “subject to” platform.

See the archives in CREONLINE for more information about the “subject to” phenomenon.

Re: Deal suggestion… - Posted by Thomas

Posted by Thomas on February 08, 2002 at 21:49:40:

The owners are currently paying a mortgage to the previous owner. Hence owner financing to seller…

The owners now have a ballon due April but the SELLER is ok with letting them go on an amortization schedule til they sell it…

I thought a lease option setup would be good because the people who own it now will pay the Seller who says they can keep paying on it til they sell…
Therefore we would lease it out with an option
They just want the burden removed of paying the note.
I can do that with a tenant…

Maybe a Lease option just for me though… I’d like to convert it to a duplex I think not fully sure and get another few hundred for it…

Any help with ideas?