Does this L/O make sense? - Posted by Jvc

Posted by Jim IL on January 16, 2000 at 21:58:04:

Phillip,
In my humble opinion, “owning” the home, (actually the trust that owns the home) is WAY better than just controlling it.
This allows you to sell the home however you want, and many other advantages.
For example:
You now have ALL the tax advantages. You can deduct the interest paid on the loan and the RE taxes.
You can sell the home using a L/O, Land contract, a wrap, and any other way you see fit.
That is pretty much how I see it.
Not too mention, some people just plain like to be able to say, “I OWN this home”. (I know in my newbie mindset I still do.)

I’m sure there are other advantages here as well, someone else will surely point them out.
But, for now, thats all that comes to my mind.

Hope this helps,
Jim IL

Does this L/O make sense? - Posted by Jvc

Posted by Jvc on January 16, 2000 at 17:06:19:

Talked to a seller who is open to a L/O…He is currently (2) months behind on his house payments ($950/mo). Does it make sense for me to make up the payments and L/O this, or is there a better way to buy/control this house, and why? FMV is around $120K, seller owes $115K.

Re: Does this L/O make sense? - Posted by Jim IL

Posted by Jim IL on January 16, 2000 at 19:05:38:

Jvc,
There are some other questions I would have, and other info needed before making a decision on keeping the home.
Such as, what is the market rent?
What about repairs? Any needed? if so, how much to do?

Then, if all looked good, and I was confident of my ability to find a Tenant or Buyer, then I’d try to get it under some form of contract.
Personally, with that little amount of equity, either a L/O or a “Subject to” deal would work.
I prefer taking the home “Subject to”.
GET THE DEED!

And, if the seller wants too many hoops jumped thru, NEXT!!
Not enough equity here for me to go thru any hassles.

Just my $.02,
Jim IL

Re: Does this L/O make sense? - Posted by chris

Posted by chris on January 16, 2000 at 17:18:10:

Do you plan on subleasing this out or living in it?

What is the market rent for this house?

Re: Does this L/O make sense? - Posted by Phillip

Posted by Phillip on January 16, 2000 at 20:44:56:

Jim, could you explain the advantage gained by making this deal a “subject to” transaction?