Posted by jason on July 16, 2002 at 15:51:26:
Thanks for the fast reply! First, I’m going to pay off their loan. I have already been pre-approved for a 105% LTV loan which is what I intend to use. Yes you’re correct, I’ll “lease/option to buy” her the same house. Would her downpayment to me then be a downpayment or would she just be buying the option?
Thanks again!
Need advice fast, please! - Posted by jason
Posted by jason on July 16, 2002 at 14:48:42:
I have a woman who owns a house recently appraised at 106K. She is several months behind in her mortgage payments despite the fact that she and her husband make 6 thousand a month. She obviously doesn’t want to foreclose but wants to keep the house. The payoff on the house is 93K. She would like to continue living in the house and paying 1100/mo until they can get their credit back in line. I can get the funding at 5.9% to buy off her. I was thinking that I would lease/option them having them pay 1100/mo with 200/mo going toward the purchase of the house, and then selling them the option to buy the house within 2 years for 110K. My problem is that I haven’t done a deal before and I, like most people, am afraid that I’m missing something. If anyone has any advice in putting together a deal like this maybe with contracts, forms, etc., it would be extremely appreciated! Also, any other thoughts on the profitability of this deal would also be appreciated. email me at jutesch@hotmail.com or call me at 219-548-9178. Thanks!
Re: Need advice fast, please! - Posted by Shawn Knowles
Posted by Shawn Knowles on July 16, 2002 at 15:50:00:
Jason,
Purchase the home, charge them their monthly payments.
You are getting probably a little lease option consideration, make sure to factor in apr. 6% appreciattion originally set up on lease option contract. Try for the two year lease option.
Sales price = apr. %122,000
Your purchase price = 93k
make sure to subtract closing cost and rent credits
check also to see if the loan is assumable.
Doing it this way is the only way that I can see you making some decent money with lease option.
Re: Need advice fast, please! - Posted by brad
Posted by brad on July 16, 2002 at 15:43:15:
look for seconds. how old is there loan. get it written up so you can get out of it. let me make sure im getting this right your going to buy her out and then turn around and lease it to her? make her pay you for the privelage and make sure you get enough dp to make it worth your while.