Posted by TRandle on January 15, 2000 at 23:50:16:
If I’m reading your post correctly, I don’t understand where the problem is. This isn’t a flip; it’s a simultaneous close. I still have yet to do one, but it shouldn’t be difficult. The buyers just go and get a loan (which shouldn’t be a problem) and buy it from the Master Lease Holder, who only has title for a few minutes. Additionally, I’ve heard there are actually lenders who will treat a one year L/O as a refinance, which would make it even easier for the buyers. Seasoned title shouldn’t figure into the equation, I don’t believe. Good investing…
I have a client that I have done business with in the past. He has a Home that he has a Master Lease Option with a option to buy for 75,000.00. What he did is sublease it to another person with an option to buy for 85,000.00. He received 3,000.00 in option money with the buyer obtaining a loan for 80,750.00. The buyer has paid the sub lease on time for the last 12 months with verifiable checks. They have obtained appraisal for 87,000.00. Their credit scores are in the high 600’s. I do not know who to send this loan to, since the MASTER LEASE HOLDER does not have seasoned title. He will walk away with around 10K if I can get it done and the Title owner will have a house sold. Does anyone know who does loans where the lender will do a FLIP transaction with out seasoned title.
Jonathan Rexford
Licensed Mortgage Broker
Licensed General Contractor