Posted by Dan on May 01, 1999 at 09:53:12:
Hello Everyone,
A friend of mine wants to buy a house for $174,900. His credit isn’t the greatest so he would need
to put 20% down. He doesn’t have 20%, he does have 5% to put down. I can buy the house for
5% down. He said he would give me his 5% so I wouldn’t have to use my own money. The monthly payments would be around $1,100. He asked if we could draw up a lease option and he
would pay me $1,500 a month, where $200 of it would go towards the down payment and I would receive $200 a month positive cash flow.
My questions:
If he were to give me the 5% to put down on the house so I could purchase it, how would this work in 12 months to show that he has really put down the 5% plus the $2,400.
($200 x 12 months)??
Can his down payment on the house be used as option consideration?
Thanks for your help.