Posted by Joe (Oh) on September 04, 2003 at 18:00:06:
well, she’s willing to go 50/50 on the profits, one rental (single family) she owes 70k, and she thinks its worth around 82-85k and if the comps come back that amount, she’s willing to let that go for 75k to me. I hope to make at least 3k on each property and get them all sold 
-gonna option 5 houses from a motivated landlord - Posted by Joe (Oh)
Posted by Joe (Oh) on September 02, 2003 at 20:19:42:
as the subject says, I got a motivated seller (landlord) who wants to liquadate 5 of her rentals asap cause her father is having health problems and she may have to reloacate soon with little notice. Shes willing to split the profits, and because I’m the starving investor, I told her I’d pay the closing costs.
anyhoo, I explained to her the benefits of optioning and how it puts both of us at no risk, and I’ll even let her list with a realtor after we signed the agreements.
SOoo, any suggestions or ‘heads up’ on this potential option deal for this first timer? I really want this to work out, even if i get just one sold, I’ll be thrilled.
She’s getting comps so in a few days she’ll know what the properties are worth and then we can work out the numbers then
thanx!
another approach - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on September 02, 2003 at 22:49:37:
Joe–(OH)-----------
Well, Ok, if you want to do it that way, do it.
Now, if she is looking at the comps, she probably will want close to market value for the properties. That is not conducive to quick resale for a profit, in my view. Even if you get somewhat below market value prices, it might not be enough to give you a decent profit for all your work.
I’d be inclined to suggest a different way, but then I am a long-term hold and invest type of guy.
I’d recommend having a master lease of the properties at a low rent. And the right to sublease the properties to renters–which you would do for higher amounts. Then you get the difference between the two amounts. I’d also structure it so that you have the right to buy the properties during a long period of time, such as 5 or 7 years. This would be an option to purchase. You purchase if wish. You sell the options on the individual properties to other people if you wish. You buy with conventional financing if you wish, or with some owner-assisted financing if you have the negotiated into the deal. If you have been running the properties for several years and paying her regularly, she will be more confident in loaning you part or possibly all of the purchase price.
Good InvestingRon Starr**