Posted by Scott Az on February 16, 2001 at 21:21:35:
Give the seller another 45-70 days to try and unload that property, when they realize they can’t be ready to do some dealing.
Lease/Option Advise Please!! - Posted by Vince O.
Posted by Vince O. on February 16, 2001 at 15:27:49:
Hey Everybody!
I’m thinking of doing a lease option on a home but I’d like some other alternatives than what the seller is offering. Here it is:
5br,2.5ba, 2,800sqft,2-3yrs. old. The seller wants $5k-$8k down and $1,450.00/mo to lease for 1yr. At the end of the year his mortgage broker friend will not charge any fees at closing and the selling price is $189,900. The sellers are moving out of state because of work and they have dropped the price down already from $214,000. The house has been on the market 45-70 days. I don’t have the down payment at this time so does anyone have good approach to this situation? I’d really appreciate any suggestions!
Vince O.
Re: Lease/Option Advise Please!! - Posted by TD
Posted by TD on February 16, 2001 at 22:51:35:
A wise person on this board once said: “Always make your profit going into the deal” - that is, upfront.
Why are you paying them money to solve their problem upfront? Would they pay a Realtor to list their home upfront? Or market it? Or find tenant/buyers?
If they’re truly motivated, you’ll find a way to cover only their mortgage payments, plus operating expenses - otherwise if you’re looking to go forward with this, you’ll be giving away you’re profit upfront.
Re: Lease/Option Advise Please!! - Posted by TRandle
Posted by TRandle on February 16, 2001 at 19:27:14:
Vince,
How about this:
- No money up front, zilch, nada, nil, nothing!
- One year lease option with at least 4 one year renewals at your choice.
- Lease payment $200 to $300 less than what you can rent it for.
- Strike price of at least 15k to 20k less than what you can quickly sell the house for.
- Or pass, and find a motivated seller.
This seller doesn’t sound motivated. Additional information that would be helpful would be the true FMV of the house, how soon they’re moving, what they plan to do if it doesn’t sell, why do they need the cash up front, what the property would easily rent for, is it listed, etc. I don’t even like to pay out 5k to 8k up front when I’m going to own the place, much less rent. Hope that helps some…