Posted by rayrick on January 26, 1999 at 08:55:26:
Sounds like a tough one, Nick. How much does the seller know about L/O’s? Are they asking for above fair market rent? Do they want option consideration?
With no equity, you’re not going to be able to make much if anything on the back end of this deal, especially if you want to offer your tenant-buyer a rent credit. The seller is probably not going to offer YOU much of one, since otherwise he/she will be coming out of pocket when you close.
So the question is, why is the seller going to give you the place with nothing down and below market rent when they got 35 other calls?!
Doesn’t sound promising to me. I think you’ll have more luck calling on houses for rent that AREN’T already advertised as L/O’s. These are the people who don’t know how to do one and you can set up terms that will allow you to make a profit on a sandwich or assignment.
Lease option/ need opinion - Posted by Nick D.(NY}
Posted by Nick D.(NY} on January 26, 1999 at 06:55:02:
Looked at a condo yesterday FMV $88,000,FMR $850.a month the seller owes $89,000. Sellar placed ad in Sundays paper to lease option property she recieved 35 calls,I was one of the calls. How would you structure this deal. Seller feeling confident because of the solid response to ad.
With no equity you would have to rely on either cash up front from a tenant/buyer or monthly cash flow. With her owing 89k it is unlikely that the payment is less than 850/mo especially with condo fees. Unless the value is more or you want to pull a rabbit out of the hat it seems that this deal belongs to an owner occupant.