Posted by Tim (snj) on April 28, 1999 at 17:31:50:
Was begining to wonder if anyone was out there.
My landlord wants me to structure L/O - Posted by Tim (snj)
Posted by Tim (snj) on April 28, 1999 at 03:59:31:
The property - 4 bedrm, 2 1/2 bath two story with a 1 bedrm, 1 bath cape cod on a 90x125 lot in better part of town in south South Jersey - owners (2 brothers and a sister) are in North Jersey, purchased it for housing their crew while they had a long term building project down here - They put it on the market for 150,000 when they finshed. 3bdrm, 1 1/2 bath ranchs have been selling for 75-85,000
Tried doing a lease purchase last year when we moved in - Agreement then was $950 consideration, $950 rent(for just the big house) w/$100 toward down payment, additional $1200 in six months and $1200 at close. seller to carry balance with sale price of 125,000. L/P fell though - seller decided they couldn’t hold the paper and I won’t be able to qualify for convental loan for 42 more months (BK13) We ended up with just the lease for one year - no option.
The tenant in little house ($525 in rent) moved out this week. They would still like to sell to us - is willing to hold up to 25% or go with a L/O or L/P. There is a +/- $45,000 mortgage on the property.
They asked me to jot down what I wanted on a piece of paper and fax it to them (last time I had my lawyer (a good friend of ours who didn’t charge but they don’t know that) draw up the agreement 'cause the realtor didn’t know how but that’s another story) They would like to have a meeting of the minds by May 1st.
My thoughts are this, 5 year lease @ 1200.00 w/$400 per month and 25% of what I have already paid over the last 12 months to go toward the purchase price, keeping the price at $125,000.
My question is this, should this be in a LLC?
Your thoughts and comments are welcome.
Thanks,
Tim
PS I was a buy and hold investor in the late 70’s early 80’s
Re: My landlord wants me to structure L/O - Posted by JohnBoy
Posted by JohnBoy on April 28, 1999 at 16:38:49:
What happened with all the consideration and rent credits you paid on the L/O deal? What kind of a contract did you have with the seller? They agreed on giving you an option and at which time you go to exercise that option, they had already agreed to carry the note for you? Why did they “decide” they couldn’t carry the note for you? That sounds like a breach of contract on the sellers part to me. Did you at least get all your money back since the seller is the one that breached the contract?
I would have told them if they “Decided” for what ever reason, they can’t carry the note any more, then they can certainly buy the contract back from me at a reasonable profit. Otherwise honor your agreement or face a lawsuit for breach of contract.
Re: My landlord wants me to structure L/O - Posted by Tim (snj)
Posted by Tim (snj) on April 28, 1999 at 05:59:00:
Really have more questions than the one posted above but I needed to end that posting 'cause my shift at work was ending (I “babysit” computer networks three 12 hour nights a week)
Does anybody see a way for me to purchase this property sooner than 3 and a half years? Is there a way to sell a note at closing for 75% LTV?
I just found this site the end of last week and I really am thankful you all are so helpful and encourging.
Again, Thanks
Tim
Re: My landlord wants me to structure L/O - Posted by Tim (snj)
Posted by Tim (snj) on April 28, 1999 at 17:18:23:
The contract for the sale was never signed. He blamed his laywer at the time. I wasn’t in a postion at the time to try to force him, I need to relocate and even at $950 for rent, this is a decent place for my family.
No extra monies were paid. $950 deposit and first monts rent.
If I had found this site a year ago I might have done differently but I decieded to give him a year to see how great of a tenant/owner I could be. Everone other house I looked at in this area wanted a credit check and won’t except me. In the past year, every payment to everyone has been on time and I am establishing accounts with local merchants. I have a long way to go, but I belive I found the right track.
Re: My landlord wants me to structure L/O - Posted by JohnBoy
Posted by JohnBoy on April 28, 1999 at 17:27:43:
I guess I misunderstood your post. I thought you already put up the money and paid the two $1200 additional payments and recieved the rent credits under a l/o agreement. I guess you were saying that was suppose to be the orginal deal but it never came together. Sorry.