I posted this as part of a thank you to EREWA for an answer to another situation and thought the following may get overlooked and are 2 opportunities I don’t want to miss if I can help them (as well as myself of course)
I have a friend/neighbor list his house 1 year ago or so it didn’t sell, he ended up renting it out for 6 months till the tenants couldn’t afford rent. He had me paint it(after they left) but said he is just going to hold it for now (doing well at his job promotion and can swing both house payments) He lives in Charlottesville VA and his house is here in the Fort Mill SC area. Sounds like a good possiblility for a lease option? (assuming he is willing and I can make the #'s ). How do i approach him? What are the right ?'s, Do you still want to sell. Would you consider contracting a lease option with me if I can find you a buyer?
What is the least you will take for the house if I could get a contract today? What is the best rent price for you if I could find you someone that could rent it with the intention of buying in the next 12 to 18 months?
Example #2 Another home in my neighborhood sold at foreclosure for $260,000 cash, he now has it up FSBO for $360,000.00 (for 6 months or so) House originally sold in 2006 $380,000.00. Should I approach him with some of the same ?'s or is there a better approach.
Neither homeowner sounds particularly motivated. One owner told you he’s OK “just holding it for now”, and the other guy paid cash and isn’t choking on payments.
You need to find out their true motivation to selling. The 1st one might not sound like a deal, but if he has real motivation (being than an “ok”), go for it. Who is to say he wouldn’t mind having that 2nd house payment off his back? What happens to his job and he looses the money he’s getting? He’ll be stuck with both house payments, and wishing he sold it to you.
The 2nd house - It depends on a lot of factors. What is his motivation to sell? How much is the house worth today? I don’t know about you, but i don’t think house values have gone up that much since the house 1st sold for, unless it needed work and the buyer bought it to flip. He’s asking more than what he paid for it. Then again, I could be
wrong.
I think you need to research or do your DD (Due Diligence) for both of these. You know there’s a mortgage on one, and the other is already paid for. Find out their values. And if your friend/neighbor trusts you like he already does, and he likes the numbers, this could be a great deal for both of you. Then again, it’s not always the brightest thing to do business with a friendship. For many people, things change in their life for a reason. They stop paying on something for different reasons, but that doesn’t mean you give up and not find others. People who know they are renting to own, will take much better care of it, than those who rent. You can screen everyone until you find a good tenant buyer, who would fit the house perfect. You could keep a list of backup tenant buyers, for that “what if” scenario, and keep the option money (down payment) for your fee, that non-refundable.
The other may be a good wholesale deal. But, you should do everything to dig deeper on any deal you come across. I hope this helps you.