Posted by Ed Garcia on January 28, 2001 at 22:32:00:
Skywalker,
Before you get froggy and jump into this deal.
I would like to suggest for you to go over to Bill Bronchicks web site http://legalwiz.com/, from there go to his Article section where you will find 2 articles from Bill titled, "Can Foreclosure Investing be “Criminal”? and Structuring Sale-Leaseback Transactions.
My advice would be for you to get in touch with a local Real-estate attorney to handle this deal.
Ed Garcia
Opinions on this deal - Posted by Skywalker
Posted by Skywalker on January 28, 2001 at 15:20:31:
I have found a disressed homeowner who is about to have his house foreclosed. To avoid the inconvenience of being tossed out of his house as well as the the credit problems and embarrasment of being foreclosed I have offered to do the following:
I will purchase the home for what he owes on it ($59,000), the house is worth $75,000.
I will then lease option the house to him giving him the option to but the house back in 1 year for $70,000.
Its a win/win situation for me. Oner the year, his rent will provide a small monthly income. In oe year I either sell the house for a $11,000 profit or keep renting it and re-fi it and pull a lot of cash out of the property.
Opinions please.
Skywalker