Posted by Bashir on February 13, 2002 at 15:18:24:
Actually, if the seller would allow you to lease opt. with the right to sublet, then you could contract for the sellers asking price. Make sure your deal is assignable along with making it subject to finding a qualified tenant buyer in some time frame. Collect about an 8 to 10,000 option deposit and assign your lease op. contract to the tenant/buyer and get out of the deal. If you are giving the seller full price, try to get them to take a small option deposit. This will allow you to collect a bigger one from your tenant/buyer to pay the sellers deposit, and you’ll pocket the rest. Comps may need to be verified, but if you don’t know them it still shouldn’t hurt you too bad. If you can’t figure comps, check what the market rents are around that area. A lot of times properties will rent for close to 1% of their market value. This will give you an idea, but knowing the real value has to come from comps. You could also get it appraised.