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.