Posted by Bill on July 02, 2002 at 22:28:44:
Aside from only applying HALF of the option money to the purchase price and also setting the sale price at what the home will be worth a year from now?
It’s good for him.
Most buyers I know want to set the purchase price at today’s value and have all of the deposit go towards the purchase price.
If this is working, maybe I need to think about changing the way I offer homes on lease option.
Bill
“win win deal…” Denver Post–fyi - Posted by Mark
Posted by Mark on July 01, 2002 at 15:33:56:
http://www.denverpost.com/Stories/0,1413,36%257E33%257E704267,00.html
Re: “win win deal…” Denver Post–fyi - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on July 03, 2002 at 13:09:04:
I found it very interesting;
While Kishell will be paying 16 percent more for the house than it was worth a year ago, she plans to stay there for several years, allowing the price to increase enough to make it a profitable investment, she said.
I don’t know that market area, but 16% is a nice little profit just for the purchase price portion. Only 10 L/O’s have happened for which nobody has actually closed yet, I have to wonder if that 16% over last year’s price will come into play.
$150, their minimum; 16% more would be $165k. If that property comes back from appraisal at $155k, I wonder if this new helping company will lower the price, or throw it back onto the market. Hopefully DP will do a followup in the future to see what has happened to these poor credit souls and this fabulous company helping them out.
Using these numbers I would guess that the company is paying about $1,200 a month on the property payment, and leasing it out for $1,500 (their 1%). The part I didn’t quite understand is that the buyer in the story could not find anything decent for $1,200; yet supposedly she would have to spend $1,500 using the formula this company is stating.