Ls/op paper - would anyone buy it? - Posted by ken in sc

Posted by Michael Morrongiello on May 04, 2000 at 23:17:08:

You really cannot sell the actual LEASE OPTION agreement since there is no way to tell if it will ever be exercised. However many investors we have worked with will “roll” a lease option into an owner financed purchase where marketable paper is created that can THEN be converted into CASH. This is win -win situation for the seller who gets the property sold and cashes out the equity, and for the purchasers who really would like to one day own and not RENT the property.

Payments on the newly created purchase money mortgage and note should be similar to the rental amount paid.

Michael Morrongiello

Ls/op paper - would anyone buy it? - Posted by ken in sc

Posted by ken in sc on May 04, 2000 at 15:08:14:

I am curious. I sell houses on 18 month ls/options. An average deal would be that I have an underlying loan in my name of 70K (I bought cheap)and sell for 89K (market value) with a 2K - 3K downpayment and the buyers paying me a monthly rent roughly equivalent to my payment.
I typically have a dozen or so of these going at a time. Most of them pay very well and I am just waiting to cash out. Sometimes, it would be nice to cash out on one early if I need the money for downpayment on another deal. Would anyone be interested? How would it work? How much profit would I have to give up?
I appreciate your thoughts.