Sounds like a good investment property and if you are ready to close don’t worry about a wrap around or how the previous owner sold it to you. If you are buying it (not as owner occupant) then it is your house and you can sell it on a l/o to anyone you’d like. I don’t believe a l/o will activate the DOS until it is sold. If you really have 11 buyers qualified, try to find houses for the other 10 and you will be making a nice income.
Just a thought. Good Luck
Mike
I am closeing on a older house that has been completly re habbed new carpet, new referigater, new kitchen etc. I have 11 people that are interested in renting on a yearly basis. House is on a acre of land in a working class neighberhood.It appears that all the prospects can afford the rent and utility payments., (The house is on a corner and across the street from a good elementry school)
I would like to offer the house w/ a “Lease option to Buy”
Can anyone explain how to go about it. ie: what is required, from the buyer , the seller , terms etc…
Posted by Ken (ILL) on March 06, 2001 at 19:21:44:
To answer your questions, from MY prospective, you will need your seller to either allow you to do a wrap-around on his mortgage OR to Lease/option it to you, with a one-level right to sub-lease. Either of these methods will give you your ability to do your L/O. What you will want from your tenent/buyer is a NON-Refundable down payment (the bigger the better). Then you’ll need to keep the place occupied. Remember, if they don’t pay, you’ll either need to sell right away, or pay some payments until you get another non-refundable downpayment. If anyone can further this, please do so!