Posted by B.Weaver on January 28, 2001 at 09:10:24:
Rick and Matt:
Thanks for the advice. I wasn’t really thinking seriously about trying to do this deal without some training, and you guys confirmed that. Would you recommend the Bronchick’s Lease option workshop for a beginner, or some other? I’d really like to get in to investing with lease/options then move into fixer upper strategies.
Thanks again guys!
To get creative or not? (kinda long) - Posted by B.Weaver
Posted by B.Weaver on January 25, 2001 at 21:13:03:
I’ve read several newsgroups, etc. about different subjects, but I think this site has the most helpful “responders”, even though some of the newbies, and would-be newbies (like me) repeat similar questions, etc.
I’ve got a situation I’d like to try out on the experts:
I own a home in a rural area that I bought for $38K and lived in almost 3 years. I had approx $22K left on the mortgage when my wife and I decided to purchase and fix up an older(1911 model) home in her home town about 7 miles away.
The first house appraised for $59K, so I had enough equity for a down payment on the second house and 6 acres which I bought for $60K. I also borrowed an additional $40K for remodeling. In the new mortgage, I paid off the first house and combined that with the purchase price of my new house. for a total new mortgage of $122K at 7.25%.
Now that the year-long remodeling project is finished and we’re moved in, I’m really trying to sell the first house for a minimum of $50K (asking $55K). I’ve already got an interested buyer, but his income is limiting him to a HUD loan, and he hasn’t signed a contract yet, even though he’s still pursuing the loan at his bank. I went ahead and put an ad in the local free newspaper this week to try and generate additional callers.
My question: Would a lease/option deal work in this situation? I’ve got a pretty good relationship with my bank, and I really don’t want to compromise that, especially since my current residence is tied up in the same mortgage. I haven’t purchased a REI course yet, but I’m really considering it if I could learn enough to make this deal. I’m pretty comfortable making the payments right now, but as time goes on, I know I’ll become one of those “motivated sellers”. Which course would you recommend?
Sorry for the long post,
Thanks in advance
Good Opportuntiy, Bad Timing… - Posted by Rick Wheat
Posted by Rick Wheat on January 27, 2001 at 05:38:07:
Trying to do a Lease/Option without learning from the people that have been there before is like “Do It Yourself” Brain surgery. Very little chance for success.
The deal you have presented is a good example of opportunities that pop-up in our lives to make a “Life-Changing” decision. However, you aren’t prepared to take advantage of it. BUT THERE’S HOPE!
Look at some of the courses provided on this site, and BUY ONE. Study it for a month or so, reviewing the forms and asking questions here. Then, once you have a clue, try it out on this house. Yes, it means you have to hold the property another thirty days because you haven’t become educated up to this point, but it will probably be worth it. You say the house appraised for $59k and you’re thinking of selling it for only $50k. There’s 9,000 reasons to do it already!!!
GOOD LUCK!!!
Rick Wheat
Re: To get creative or not? (kinda long) - Posted by Matt B
Posted by Matt B on January 26, 2001 at 12:05:45:
It sounds like a lease option could work here. However, there’s no way in heck I would try to do this if I were you without having studied how to handle each part of setting up a lease option deal. Invest the couple hundred into a course on lease options on this site. Believe me, it will save you a HUGE amount of headache and trouble!
After you complete your study of the course, if you still have questions as to handle the deal, post here, and me or someone else will be glad to help you out with any questions you might have. There will be parts of the course that won’t apply to your situation (Like finding sellers or properties) but the rest of what will gain will be well worth it. Good luck.