Posted by Brian M. Powers(MI) on March 10, 2002 at 21:11:15:
I pay the seller $1168 per mo. which covers the PITI of sellers mortgage, it is a 3 year agreement with an option to buy at $125,000. The current FMV of the home is just under $140,000.
I rented it out on a 2 year L/O at $1300 per mo. with an option to buy at $139,000.
I found the home by calling a For Rent ad where the number was out of town from where the property was located.
Finally found T/B for my 1st L/O Deal - Posted by Brian M. Powers(MI)
Posted by Brian M. Powers(MI) on March 09, 2002 at 10:06:18:
A few weeks back I posted that I was having difficulty finding a T/B on a L/O deal. It is my first deal in the area of Lease Options.
I received a lot of great responses that helped…thank you all for your input.
I was considering lowering my monthly payment in order to induce more potential T/B’s but one of the pro’s here told me not do it and instead, take a lower option consideration with a higher monthly payment as most people have more trouble with the down payment than the monthly payment. I believe it was Dee-Texas but can’t find the archived file. Whoever it was, thank you because it was great advice!
A seller called and he wanted the house. He was looking for a 2 year agreement because he felt he needed that long to be able to qualify.
He could only come up with $2000 down as option consideration, instead of the $3000 I was asking.
So I told him my standard L/O agreement (even thought it was my first one!) was a 1year agreement w/ $3k down.
But I would compromise and give him a 2 year agreement, with $2K down, I bumped his rent up an extra $150 per mo. and added $2K more on the back end of the option excercise price.
So by taking $1000 less now, I get an extra $150 per mo. for the next 2 years ( an extra $3600!) and another extra $2000 on the back end if he excercises.
Thanks to all for all the questions you’ve answered and the help you’ve given.
I can’t wait to meet the great folks who contribute to this site in a few weeks at the convention!!
BMP
Re: Finally found T/B for my 1st L/O Deal - Posted by Joe M.
Posted by Joe M. on March 09, 2002 at 18:35:59:
WAY TO GO BRIAN! COngrats. Do you mind sharing the numbers, and what advertising you used to find the home and t/b? thanks, Joe M.
Re: Finally found T/B for my 1st L/O Deal - Posted by Dee-Texas
Posted by Dee-Texas on March 09, 2002 at 11:16:08:
Congrats!!!
See it DOES work where you live.
Best Success!
Dee-Texas