Lease Option question - Posted by Adam in Indiana

Posted by William Bronchick on November 22, 2000 at 12:14:36:

Absolutely worth, especially if you buy subject to her loan and sell on contract.

MAKE SURE THE PROPERTY IS SALEABLE!

If it is on 3 acres, I assume it is not in town, so selling it by any means may be difficult.

Lease Option question - Posted by Adam in Indiana

Posted by Adam in Indiana on November 22, 2000 at 11:58:31:

I’m pretty new to this like so many other people. I currently have a tenant who just moved into an apartment because of a recent split with her husband. She said that they own a house on about 3 acres and would like to get out from under it. She said that the FMV was between 75k and 80k, but she wasn’t sure. She also said that she owed 62k on the place and really only needs about 3k or so cash to pay some bills.

Now, I was thinking that somehow she could sell to me on contract (I know, I need more details on her current financing) and then I could turn around and do a Lease Option to someone else with a decent down-payment.

Anyone have any thoughts on the subject? I’ve never done a L/O before, but I’m eager to learn. Ordering Bronchick’s L/O course for forms and such. I’m just wondering if this is a wise strategy and if there is enough of a “spread” in equity to make this worth my while. Thanks for the input. I’ll find out more details later today.

Adam

Re: Be sure that you are purchasing - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on November 23, 2000 at 16:23:31:

all of the property, and not a half interest. If the husband has not signed the property over to her, she may not be able to sell you all of it (she may only own half).

You really would not want to end up “in bed” with the ex, or estranged husband (so to speak). Just be sure to buy all of it.