Need Option Papers and Ideas - Posted by Jason (TX)

import · August 20, 2003, 12:13pm

Posted by Brent_IL on August 20, 2003 at 18:24:57:

.

import · August 20, 2003, 12:13pm

Posted by Jason (TX) on August 20, 2003 at 12:13:32:

A lady is selling her house and has agreed to give me the option to control the house with no money down for 90 days. I plan to use the option and resell the house owner finance for 78k. I don’t know if this would still be considered a lease option since I am not purchasing the option, and the only money I will be paying is the payments which are 582.53 until I get the house sold. She is already 2 payments behind and wants me to pay that as well. Oh yeah, she wants 3000 for her equity when I sell the house. I plan to onwer finance and turn around and sell the note as a simotaneous closing, hopefully getting 90 cent on the dollar. Can anybody direct me to where to find the option paperwork I need to make this deal work. Here are the details.

Selling price: 60,500.00 she wants 3,000 in 90 days after I do the simo
Underlying lien: 57,500 is what she owes the bank on the property.
FMV: 78,000
Repairs: none

If anybody has any other suggestion it would be appriciated. Again I also need to find out what form to use on the option.

Thanks,

Jason

import · August 20, 2003, 4:48pm

Re: Need Option Papers and Ideas - Posted by Brent_IL

Posted by Brent_IL on August 20, 2003 at 16:48:05:

There might be an option contract at www.deakmakerscafe.com They have a lot of documents.

This deal seems to be strong on theory, but the implementation will be challenging if you are counting on the note sale to fund the deal.

First, find probable sales value, which is rarely FMV.

Lock down the terms. You didn’t mention any counteroffers to her "I want’s.

You don’t have a buyer in the wings. Table sales of 90% notes happen when the payee is credit-worthy. The LTV is secondary. Many of the folks with good credit that desired to buy houses have done so as interest rates dropped. The remaining CFD buyers include a high percentage of poor credit prospects.

Even when repairs are zero you will still have clean-up and painting costs.

The question that looms in my mind is that if she can’t pay the monthly payment, once you bring her current, where is she going to go with only $3,000, and what incentive does she have to leave the building at all when she could remain for a year with no payments?

import · August 20, 2003, 5:46pm

Re: Need Option Papers and Ideas - Posted by Jason (TX)

Posted by Jason (TX) on August 20, 2003 at 17:46:43:

Brent,

Thanks for the reply. Sorry I didn’t make it totaly clear but the price I stated FMV was originated from 4 comps I got on the property.
As far as a counter offer that was it. She started asking 10,000 in equity.
Your last question: The seller is in the process of moving to Dallas and already has a house up there. Thats why she can’t afford to make the payments on this one.
I will check on dealmakerscafe for the forms. Your ideas and advice has been valuable.

Thanks again,

Jason