Lease Option Help - Posted by Emmett-NC

Posted by JohnWe (NoCA) on February 05, 2000 at 15:43:11:

If you can get the deed, go for it!

Take the property subject to, and wrap it on an ILC for 82,500. I think you and the real estate agent will like these numbers better:

Purchase Price: 67K
Payment: $560
Closing Costs: 3K
RE Agent’s Commission (yuck!): $4k
Out of Pocket: $7K

Selling Price: $82,500
Down Payment: $8,250
Owner Carry: $74,250 @ 11% / 30yr
Payment: $707.10
Net Cash Position: $1250
Net Cash Flow: $147.10 / Month for 30 years
Yield: Over Infinite

And no headaches of being a landlord. In addition, you’ll probably have a real estate agent friend for life!

AND if you don’t have $7K – do this. Find a partner, and offer him 25% on his money for one year. He puts up $7K, and he collects $147.10 for one year. At the end of the year, return his $7K, and you can collect on the $147.10 for 29 more years!

Let me know how it goes!

Lease Option Help - Posted by Emmett-NC

Posted by Emmett-NC on February 05, 2000 at 13:57:30:

Ladies and Gentlemen,
I received a call back from one of my FSBO site E-mail blasts to homes in my area. Turns out the contact is a realtor. He owns over 25 units himself, so it was nice to find a realtor who knows what I am talking about. The sellers are now divorced and in the realtors words “want out NOW!”. Here are the numbers…

Comps come in at 73K-75K for this neighborhood. 1 mile from post, and pretty desirable area.

Mortgage balance is 67K Payment 560

Property was rented for over a year at 660

Is this deal a lil bit too skinny? Also, even though the realtor is an investor and cool to talk to, I still have to work through him, which drives me nuts. Also he said the sellers would want some security deposit. I told him I would pay a small security deposit or a couple months pre=paid rent. But that I would offer as little as possible. I told the realtor that I would be subleasing it. He said that was fine, and asked me fax a letter of intent.

Any suggestions would be greatly appreciated. Thanks!!

See ya at the convention!!! =)