Posted by Christian Beebe on August 29, 2003 at 16:47:01:
I agree with Mike, but here’s my confusion…what the heck are you giving $1000 down to the seller for? If they are motivated, they should be more than happy to let you pay them monthly. If they need proof that you are serious, then you can put money into an escrow account. Just curious, let me know how this came about.
lease/purchase confusion - Posted by steve
Posted by steve on August 29, 2003 at 09:35:41:
scenerio…
Seller has 1500/month mortgage including school taxes, trash collection, sewer, mortgage insurance… I come in and work a deal with seller. I give him 1000 down and 1500/month. My buyer pays me 5000/down and 1600/month. Question #1, is it typical in these deals to pay sellers taxes and other things included in mortgage payment? I pay all those things in one check to my mortgage company. Question #2, I know my buyers 5000 down goes toward purchase price if buyer decides to buy after whatever time we set, but do I put monthly payments MINUS everything but principle(no interest, trash ect.) toward purchase price?
Thank,
Steve
Re: lease/purchase confusion - Posted by Brent_IL
Posted by Brent_IL on August 29, 2003 at 20:42:31:
Am I getting this right that you want to purchase a property and then offer a L/O to a third party?
If I were to do this, I’d buy the property subject-to the mortgage at a purchase price equal to the mortgage balance + $1,000. I’d give the seller a down payment of $1,000. I would sell the property to a R/B via a PACTrust arrangement. In my mind, it’s a cleaner deal and less likely to be problematic because of rent credits, et al.
When you sell, you receive a note on which payments are being made. You most definitely should be charging interest. The trash, etc. is the responsibility of the one designated in the lease part of the L/O, most likely the tenant. This has nothing to do with credits or pay-downs.
Re: lease/purchase confusion - Posted by Mike Scarchilli AZ
Posted by Mike Scarchilli AZ on August 29, 2003 at 09:51:48:
Steve, to answer question 1, the payments you make to the seller are or should be all inclusive of any taxes that the property has, if it’s included with the sellers payment. If not then i would suggest a third party servicing company to make sur that this met. Question 2, the only money of the monthly payment that goes toward the purchase price is whatever credits YOU wan’t to give to the T/B otherwise that payment pays the sellers money and what ever you agree with the new buyer, that difference is yours to keep. Now I just need to get off my but a do some more deals like that! LOL hope that helped. Mike AZ
Re: lease/purchase confusion - Posted by steve
Posted by steve on August 29, 2003 at 12:48:40:
thanks Mike,
you helped alot.
Steve