Yes, you can do any of these techniques. All you need to do is find out what the seller NEEDS and present a solution to solve the problem. Just because he owns the property free & clear means nothing. It sounds like he doesn’t NEED to get all his cash out NOW, especially since he paid cash for someone else to just live their. It sounds like he just wants to get rid of this thing since he no longer has a use for it and doesn’t want to be bothered with it!
A L/O, seller financing, getting a new first for 50% - 70% LTV with the seller holding a second for the balance to get him some cash out could all work. It’s just a matter of what the seller NEEDS and is willing to do just to get this thing off his back so he doesn’t need to be bothered with it!
Go sit down at the table with this guy and work out an arrangement that he would be agreeable on! That’s all their is to it! Once you come to some sort of an agreement on the terms, write the thing up under a contract spelling out those terms and get it signed off. The house is yours!
FIRST flip/lease-option/something! Need input! - Posted by Steve (OH)
Posted by Steve (OH) on March 09, 2001 at 05:56:36:
I have 21 units that I own and manage and am breaking into the wonderful world of lease-optioning/flipping after going to Bronchick’s lease option workshop a few weeks ago.
I placed an ad last weekend (buy houses) and received a call from a seller in need of help. He recently bought a house for a guy he hired who just got out of jail. He obviously is not your typical seller because he bought the house with cash as a gesture of good will for someone else. Well, long story short, the owner went out of town and this guy split as well…never to be heard from. Now he wants the house off of his hands. He paid 37,500 for it in a neighborhood where top sales have been 80k or so, but they are also selling for 30k right around there. He just “wants out!” (Even though I’m new to flips, I know “buzz words” when I hear them!) Conservatively, I think I could sell for 50k or so with special terms.
Not sure if this is a good candidate for a lease option as the guy owns it free and clear. What about having him hold back financing and I lease-option it to someone? Or have him hold financing and I sell on a wrap??
Like I said, I can screen tenants/show apts with the best of them, but am new to the “quick buck” process.