Posted by Jim IL on December 07, 1999 at 22:44:36:
Jamie,
Sounds like you have your terms worked out alright.
Just do a L/O agreement, all in one contract with your seller.
Then, sing up the Tenant/Buyer using a seperate Lease agreement, and Option agreement.
This way, you can evict the T/B’er easier should they not perform.
Good luck, and let us know how it goes,
Jim IL
Need all the L/Oer’s to help with this deal!!! - Posted by Jamie_Ga
Posted by Jamie_Ga on December 07, 1999 at 19:41:10:
Ok here are the details, I found a home that the owner is willing to Lease Option , The House appraises at 70k Negotiated 65,000 sales price, 500 option consideration, payments of 400/mo with 300 Rent Credit, Havent sign yet all verbal suppose to sign off in the morning.
Have buyer lined up Selling price 69k with 10% option consideration, 6900 and 500/month with 200 Rent Credit,
Are there any other factors I need to take into consideration here, I dont have cash So I am going to have to do all of this simultaneously, Owner of the home Are building a home about 100 miles away and the home wont be finished for about 3/mo But they said they will get out before, The Buyer just needs time to give her lanlord notice, (I thought that was a strongpoint too)
What is the best way for me to do all of this simultaneously I was thinking of telling the owners that we will close this in 1 month (Long enough for the buyer to give notice, And they would only have 2 mos left before there house was finished.
Also what all should I record? Should I do a l/o or a l/p with with the seller? Should I do a l/o or a l/p with the buyer?
Thanks for all of your help and if this works out see you all at the convention, (FINGERS CROSSED)
Jamie_Ga
Re: Need all the L/Oer’s to help with this deal!!! - Posted by Tom FL
Posted by Tom FL on December 08, 1999 at 08:25:05:
Hmmmm
Am I reading this right?
Your purchase price $65,000
Your TB’s purchase price $69,000
TB’s down payment 6,900
TB’s purchase balance 62,100
If your TB were to close immediately you will need to bring $2,400 to the closing table (65,000-62,100). Yeah, you made 4,000, but this isn’t that great of a deal.
Usually, the theory behind LO’s is to sell at price higher than normal FMV because of the great terms you are offering. For example a TB sales price of 75,000 would have improved the back end.
The front end is great, and the cash flow is ok.
Good luck
Furthermore