Lease Option/ First Deal/ Quick Help - Posted by Jason Perry

Posted by d.henderson on March 04, 2000 at 21:39:37:

Be careful about those re-fi’s, many have prepayment clauses that add up to a lot of money. So know if and when they kick in. Make sure you can hold the property while you market it. With payments like those, see if he will prepay one for you. If you really know your market the spread on payments look good. ALWAYS do your due dilengence it always pays off. Whether you go with the deal or let it go to look for a better one.
Sucess through creative real estate.

Lease Option/ First Deal/ Quick Help - Posted by Jason Perry

Posted by Jason Perry on March 04, 2000 at 20:29:50:

Here is the situation:
seller has home with mort of 105k on it;
look’d at refi in July 99 apprs’d at 125k = high b/c refi
mort pmt is 971 with a 13 1/4% int rate
3B/2BA, 6 yrs old- seller is on verge on going under with
the pmt— high pmt due to divorce 2 yrs ago
expl’d L/O to seller, is interested
I would go into deal with giving him 2-3K now for home and have him deed me prop.
my exit is to take over his pmt’s of 971.00 and L/O to tenant/buyer for $5000 option and 14-1500/mo pmt (mkt should handle that cost) with T/B purch at $125-130k
Am I on the right trail
I am excited from the CreOnline conference and want to do my first L/O and this looks good~~~~~~~~~
What do you all think??? Thanks very much in advance

Re: Lease Option/ First Deal/ Quick Help - Posted by d.moren

Posted by d.moren on March 05, 2000 at 01:20:17:

What am I missing?

105k @ 13.25% for 30yrs = $1182.06 pi
you’d need a rate of 10.63% to get a pmt of $971.00