Posted by Bud Branstetter on March 21, 1999 at 14:25:14:
When I lived in Az we called them adobe. In the pioneer days they were sod homes. My guess is that this one is built into the side of a hill with or without dirt over the roof.
what to do - Posted by Bryan
Posted by Bryan on March 21, 1999 at 09:12:04:
I have an opportunity to do a lease op on a earth home. I’m a total newbie ( just got legrandes L/O course) and am alot nervous. The lady wants 65,000; the appraisel was at 67,000 two years ago and has since had central air and all new carpet put in. It is in great shape. She has about 20k equity in the place and is willing to do the lease option in anyway that I see fit as long as she gets her 65k at some point; even if it takes 30 year ( she wants out).
This is in Missouri if that has anything to do with it. Also her mort payment is $417 a month for 16 more years. Should I get a new appraisel and how much interest should I be looking at on the financing?
What to do
Bryan
Re: what to do - Posted by JPiper
Posted by JPiper on March 21, 1999 at 11:00:05:
First, read your course. Your terms on financing doesn’t have much to do with a lease/option.
Understand that earth homes are one of those property types that will raise a red flag to many lenders. This is undoubtedly why this owner seems quite motivated.
Nevertheless, this may provide an opportunity to you. I would call a number of lenders and ask them what types of financing programs they have available for earth homes. This will let you know what you’re up against.
If I did a lease/option I would do it for at least 5 years. I would have a provision in my offer that made it subject to locating an acceptable tenant/buyer. I suspect Legrand will have info regarding this.
Regarding the 5 year term, I would make this 12 month terms renewable 5 times at your option. In other words, I would take no more than a 12 month risk.
JPiper
Earth Homes? - Posted by Brandi_TX
Posted by Brandi_TX on March 21, 1999 at 12:21:58:
I Have never heard this term until today. Could you explain what these are or where to get more information? Thanks.
Brandi
Re: Earth Homes? - Posted by Bryan
Posted by Bryan on March 22, 1999 at 15:21:30:
some people call them earth homes and or basement homes. The one that I’m looking to lease op is called an earthhome. It’s not like it’s made out of dirt or straw; it is concrete walls with dirt usually piled up on usually the back side and partially on the sides. I really like them as they are quite sound proof.
Re: As opposed to Mars Homes (nt) - Posted by Stacy (AZ)
Posted by Stacy (AZ) on March 21, 1999 at 13:48:51:
nt