Posted by DanM(OR) on January 21, 1999 at 20:00:54:
There are a few things that come to mind here:
How sure are you about the $7k?
Will it rent for $500 in it’s present condition?
If not, it doesn’t seem like that much of a deal.
I would read Bill Bronchick’s Lease option a junker article on this site. I would also reccomend that you buy an LO course before you get into them. That’s just my opinion.
Best of luck to you!
Dan
Lease purchase deal - Posted by My first deal?
Posted by My first deal? on January 21, 1999 at 10:32:56:
Hey guys I think I might got my first deal. There is this
great fixer upper in a good area. Its a 3bdrm, patio, 1
car garage, the seller is asking 30k, and it appraises for
50k, but it needs at least 7k in repairs. The seller is willing to do a lease purchase with 1k option consideration, at $325/mo. with $50 credited to the purchase price with right to sublease or assign my lease, but he wants me to fill out a credit application. There is no mortgage on the house, so there is immediate equity. This would be
my first deal. The house is great and I know it would easily rent for $500/mo. Is this a good deal? Should I
ask for better terms? How do I get pass the credit app.
because my credit is not the best?
Re: Lease purchase deal - Posted by Charise
Posted by Charise on January 22, 1999 at 09:28:12:
Your deal is at a good starting point, but I definitely think you should negotiate for better terms. For example, instead of $325/mo offer $400/mo BUT you must have a 50% credit ($200 towards your purchase). Also make sure some of that 7K (preferably all) is also applied to your purchase price. Point out to the seller that this puts him in a better position as well. He’s getting more income monthly and if you didn’t exercise your option for some reason, he would have a house that’s now fixed up which he could sell at a higher price and be sure to stress the fact that he wouldn’t have spent a dime or lifted a finger.
Just some of my thoughts. You’ll feel really good about yourself once you get that first deal under your belt. Good luck and God Bless.
-Charise