Posted by George on February 16, 2001 at 12:27:44:
nt
Help with possible first Lease Option. Thanks! - Posted by Jeff P
Posted by Jeff P on February 16, 2001 at 08:43:05:
Hi, All
I am here every day reading, and reading…
I will be attending the convention in Atlanta for the first time, but have a possible opportunity I would like to run by you. I came across a woman who is divorcing. Her husband & she own three properties; their primary residence, and two other houses. Not investors, just ended up with them, long story. I have driven by the one house, and I would like to perhaps L/O it from her. She wants to sell at $135,000. Tax assesed value is $101,000, and comps run 113 k to 125 k. I would live there for a year, build up some equity with the 12 months of option moneys coming out of the rent, and then sell it next Spring when I have made more $$$$$$$ as a result of going to the convention, coming home and getting started! I don’t have any courses yet - hope to buy LeGrands when I am down there. Can anyone help me through structuring this? Remember I am still taking the small bus to Real Estate school, so please put it in laymans terms. 
Thanks to all of you. You’re my kind of people! I am so excited about the convention!
Jeff P
Re: Help with possible first Lease Option. Thanks! - Posted by Jeff P
Posted by Jeff P on February 16, 2001 at 10:25:16:
Thanks, fellas!
The input is greatly appreciated. I was thinking along the lines of negotiating the asking price downward to make the deal worth it. The house is sitting vacant and she is paying mortgage and gas bill monthly. She indicated that this was a difficulty for her, so I was thinking of paying rent/option monthly in the amount of her mortgage, and negotiating a reduced selling price and a percentage of the rent going toward downpayment next year.
Re: Help with possible first Lease Option. Thanks! - Posted by Matt B
Posted by Matt B on February 16, 2001 at 09:21:04:
I agree with Phil. This doesn’t sound like a deal to me. The numbers don’t work. There’s not enough motivation.
How much have you spoken with the sellers? Do they NEED $135,000 or is that what they want? Are they open to the idea of a lease option? Are they open to negotiation on that price?
My advice to you would be to go to the convention FIRST! If you haven’t bought any course yet and are trying to do this deal that may be a bad deal, then obviously some more study is in order. Most of the courses are offered at a discount at the convention any way, so that would be a good time to pick one up.
Re: Help with possible first Lease Option. Thanks! - Posted by phil fernandez
Posted by phil fernandez on February 16, 2001 at 09:01:29:
Jeff,
I don’t see motivation here. They want $135,000 and the comps say the value is between $113,000 and $125,000. You make your money on the buy.
This is not a deal. Spend your time looking for deals where you can buy at a discount.
In That Case You Might Be Talking Turkey - Posted by phil fernandez
Posted by phil fernandez on February 16, 2001 at 10:36:16:
Good thinking Jeff. From your latest post, there does seem to be some motivation then. Perhaps you will just have to educate the seller. Make sure they realize that you are there to solve a problem, their problem.
Get all the perks you can besides a lower option price. Large rent credits, possibly a longer term option. 3 to 5 years are nice when your the optionee. Whittle away and you still may have a deal, but of course not if you are talking above fair market value.
And remember. They need you, more than you need their house.
See you in Atlanta
Re: NEXT (nt) - Posted by Jeff P
Posted by Jeff P on February 16, 2001 at 10:27:02:
George, What is meant by NEXT? Does this mean move on to a more motivated seller?
Thanks, Jeff P
Re: Help with possible first Lease Option. Thanks! - Posted by Rich
Posted by Rich on February 16, 2001 at 21:12:47:
My advice to you would be to find out if you can get the husbands signature on the necessary documents. You said they were going through a divorce. If it is a community property state they will both have to sign. Depends if it is in her name or both and does the husband hold any intrest in it.
Re: In That Case You Might Be Talking Turkey - Posted by Jeff P
Posted by Jeff P on February 16, 2001 at 10:48:47:
Thanks for the practically “real-time” reply Phil. I hope you know that you and the others who post with their knowledge of the business on this site are INVALUABLE to someone like myself who is just starting out. I have committed myself to continue to hang out on these message boards as I gain experience so that I can give back like you do. I’m sure you know you could charge for your expertise, so howsabout I buy you a drink in Atlanta?
Thanks again, Jeff P