Re: Just wondering how you worked it? - Posted by Floyd Jones
Posted by Floyd Jones on February 07, 2001 at 10:14:42:
Actually John, The second deal which is my personal residence wasn’t very creative. However, it was done in a way that prevented me from coming up with a huge down payment.
My personal residence was purchased on a rent with option to buy. It was a VA Foreclosure that I saw on line.It was listed for 119,000.00 3/2 swimming pool, B-Ball court, & a lot of extra land in the back.
I called the listing agent & asked if I could see the property & then have him submit a bid for me. It was listed for 119,000.00. After looking at the property I had him submit a bid for 129,000.00. I won the bid. I gave him 1300.00 for option consideration & agreed to pay another 1300.00 at closing along with 1300.00 security deposit. My monthly rent is 1300.00 with 300.00 towards the down payment when I exercise my option. Which I am doing now. At the time when I secure financing, I will have the last months rent of 1300.00 plus the security deposit & the 300.00 from every months rent to go towards my down payment. The beauty of this transaction is that I don’t have to come up with a lump sum of money to cover the 10-20% down payment. I am in the process of having the house appraised. It should appraise for approximately 150-160,000.00 This is based on the appraisal of the houses to my left & right. My house has a swimming pool & more land than both of my neighbors. So I may be under estimating the value tremendously. We will see. I don’t have much experience with estimating values. However, I am learning more & more as I look at properties.
I hope that this info helped.