Posted by adam on June 17, 2005 at 14:37:00:
well this would be my first deal, she called on one of my signs. i dont have an area of expertise yet i have read bronchicks courses on flipping and l/o’s. i have credit for traditional but im going to buy a house for myself so i dont think i can do that. yes the $500 month is discounted it should be $600. but getting it upfront is the bonus. im just not sure where to go from here.
Please help with this creative deal!!! - Posted by adam
Posted by adam on June 16, 2005 at 14:36:46:
hey guys i just got a call from one of my signs. this lady has a duplex she wants to get rid of. she lives downstairs and has an eviction upstairs. so she is late on her payments. she wants to buy a condo in 10-12 months. so she wants to sell the house and still live there for year. i asked what she would list it for and she said $110-115k. she told me though that she paid $100k two years ago and only needs that back. kicker is she will prepay her rent for the first 10 months. so she would give me $5k at closing for 10 months rent. she is motivated and willing to work on terms. im just not sure of the best way to structure this. let me know if you need any more info. thanks!
Re: Please help with this creative deal!!! - Posted by Randy (SD)
Posted by Randy (SD) on June 17, 2005 at 10:33:13:
There are many ways to structure a deal like this but yes, more information is needed.
What is your experience? What strategy or techniques are you familiar with (lease option, subject to)?
Do you have the credit for traditional financing?
Do you have the financial reserves for a down payment or to catch up her late payments?
What is the FMV of the property, and how did you arrive at that value (other than what the seller told you)?
What is the fair market rents for the upstairs unit? She’s agreed to prepay ten months rents at $500 a month, is that discounted?