Posted by Chris on March 02, 2000 at 17:04:47:
Matt-
Either a land contract or a lease option can trigger the DOS. Check out the free articles on this site-if they don’t answer your question please repost.
-Chris
Newbie Needs ADVICE (sell or lease/option or land contract) - Posted by Matt
Posted by Matt on March 01, 2000 at 21:14:00:
Let me know your thoughts. Here’s the deal:
We have our first home on the market to sell. 3 years old, 3 bedroom, new neighborhood, mint condition, 1150 SF. Its value is 115,000, the mortgage is 106,000, monthly payment is $760 including taxes and insurance. (Rate can go up 1% or ($70/month) every two years starting 9/00.) I have enough cash to put down on our next home without selling.
Should I: 1) Sell 2) Lease Option 3) Land Contract. Which one and WHY? One person I know suggested land contract.
You can tell I am a newbie but we all have to learn some time. Any suggestions on a good place to start with my “education”? Someone suggested Ron LeGrand’s Book, Fast Cash.
I’ve got the itch to get into the rental business. Should I?
My Vote is … - Posted by Rick W.
Posted by Rick W. on March 02, 2000 at 04:18:12:
to sell with No-Qualifying Owner Financing, if the conditions are right. By that, I mean YOUR financial conditions. As an instructor for Ron LeGrand’s Bootcamps, I’ll tell you my thoughts (since you asked).
Some new investors could use a quick $5-$10,000 to pull them out of a big hole they may find themselves in. In that case they might just want to sell for quick shot of capital. However, if you aren’t on the doorstep of financial catastrophe, you would make a much better overall profit by selling and offering Owner Financing.
There are several reasons for this:
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You can ask for a higher selling price. Because the number of houses available to buyers who cannot get approved for a conventional mortgage are few, and the prospects seeking those houses are many, the law of supply and demand drives up the value. Thus a higher selling price.
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Higher monthly payments to you, for essentially the same reason. Plus, people will pay more to OWN a house than they will to simply RENT, with an opportunity to own at some point in the future.
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Higher “Back End” profit. Because you can set your terms at whatever works for you, you can typcially realize a bigger payday at the time your buyer cashes you out of the mortgage, because of the slower paydown or amortization of your mortgage to him versus the mortgage you are paying. You are creating a greater equity build-up so to speak in the values of the mortgages.
As I mentioned, Ron (with a tremendous amount of support), teaches a full five day Bootcamp on just this subject. The next one is the end of this month. If you’d like more info on it, e-mail me and I’ll get back with you.
GOOD LUCK!
Rick W.
Re: Newbie Needs ADVICE (sell or lease/option or land contract) - Posted by David S
Posted by David S on March 01, 2000 at 21:23:30:
Seems you have a good candidate for L/O as long as you get some upfront cash… 5-7%. The market should tell you which way to go. Can you sell with terms for 124,900-129,900? should be able to. You should also be able to get about a 200-300 monthly positive cash flow.
My question is why you plan to use your cash for the down payment on your next home? Why not find a creative deal for yourself?
David S
But what about - Posted by Matt
Posted by Matt on March 02, 2000 at 16:40:18:
the reason I am leaning towards a lease/option is the Due onSale language in my note. I know there are ways of getting around it (ie Land Contract) but I am not sure if I want to risk it.
Matt
Re: Newbie Needs ADVICE (sell or lease/option or land contract) - Posted by Matt
Posted by Matt on March 01, 2000 at 23:08:32:
Good Point David, Maybe I should look into creative ways to buy my next home. Any ideas as to where I should look? Ron Legrand etc…Thanks for your feedback