Posted by JohnBoy on February 19, 1999 at 17:35:01:
Depending on the amount of back payments owed you can use the option consideration from your tenant/buyers to make up the back payments. If you had a buyer with $5k to put down and the seller was $3k behind in payments, you take the $3k from your buyer to pay the back payments and pocket the other $2k. Then you collect off the monthly spread and pick up the rest of your profit when your tenant exercises their option.
L/O problem – need help of pros - Posted by joe in NYC
Posted by joe in NYC on February 19, 1999 at 15:49:28:
I am eager to start doing l/o deals in Long Island, NY. A friend of mine who flips houses full time pointed out that most people who respond to his “houses bought all cash” and other motivated sellers are usually two or three months behind on mortgage payments. How do you deal with this on a lease option? If not possible, what other opportunities are there? He passes on houses all the time because (he says) that because he and his partner do rehab flips and buy the houses all cash w/ backers, they need a minimum spread of $40-50k below market. Any answers?