Posted by Jan on January 30, 2001 at 21:02:35:
I am in a rental situation with a landlord looking to sell. How can I get this property with no money down or use a lease option to my advantage?
So so deals everywhere… Am I getting lucky? - Posted by Al Rosetti
Posted by Al Rosetti on January 30, 2001 at 08:45:16:
Ok, they might not be great deals, but I’m looking for my first deal and there are houses I could buy for 10K to 15K under retail all over the city. I had no idea how many people are in some sort of distress situation and need to sell fast because
A) They’ve been transfered
B) financial problems
C) They’ve already purchased a new home and need out of the one they already have.
I know anything is possible but is it likely that I can make money flipping homes with margins as tight as 10K to 15K? If not what is going to eat up my profits?
sincerely,
Al
Other costs… - Posted by Gary
Posted by Gary on January 30, 2001 at 15:20:36:
You have to consider the costs of carrying the property for three to six months as you find buyer. Taxes, utilities, maint, mortgage (if any) as well as attorney fees if you close on a traditional sale. You could try lease/optioning the property pretty quickly to someone with minimal qualifying requirements at $20k more than you paid, with option money that equals or is greater than your down payment, and at an above average rental rate with a rent credit toward purchase. Read on this site how people buy under market and then sell on a lease option. Profit is the spread between your buying and selling price, spread between your monthly carrying costs and the rent you charge, and the spread between the option money you get and the downpayment you had to make…I have not done it…yet…but many people find this profitable and most people never actually exercise their option so you keep the option money, the high rent, and move on to the next potential lease/option “buyer”. Good luck