Need expert advice on this one... - Posted by Tom_FL

Posted by Tom_FL on May 08, 1999 at 21:42:53:

Thanks Phil for your help…Unfortunately, I am pretty rookie at this. I just bought my house 4 months ago so not much equity yet (less than $10K). Anyway this seller asked me to call him back next week to talk about his other multi-family units that are not under this P&P Sharing Trust…But I am more interested in his Townhouse because of its excellent location…I’m glad I found this website.

Need expert advice on this one… - Posted by Tom_FL

Posted by Tom_FL on May 08, 1999 at 19:15:20:

I found a FSBO Townhouse. Asking price $65K, presently rented $725/month on a yearly lease. The 2BR/2Bath 2 Story property is free and clear. I ask owner if he can finance, he said he can’t because his Townhouse is under a Pension & Profits Sharing Trust that cannot do that and he can’t think of a way to do it. I already own my house and am interested in this property for investment purposes. It’s also located in hot rental area. I asked him to deed me the property and would give him a Quit Claim Deed in order to get financing. He declined…I thought about L/O but can you do this while the property is already rented? I don’t have much cash but my credit is good. Seller said he is not in a rush to sell but he will do it because he’s tired, he owns several other rentals. Any suggestions? Thanks.

What you need… - Posted by Sean

Posted by Sean on May 09, 1999 at 09:29:50:

…is a list of investments that a profit sharing trust can invest in. He should either have or be able to direct you as to how to find that.

Yes, it’s very possible to lease-option a house that’s already leased.

Re: Need expert advice on this one… - Posted by phil fernandez

Posted by phil fernandez on May 08, 1999 at 20:27:12:


Is your own house free and clear. If it is you could substitute collateral. The seller can not put a mortgage on his townhouse. Why couldn’t you secure the mortgage on your own house.

In fact the seller would probably have more security with the mortgage on your house than on his townhouse. The arguement goes that you are not going to lose your house that you life in to a foreclosure so he should be more secure with that concept.

To be honest, I have never heard of a Pension and Profits Sharing Trust. What’s that.