I have a deal that I’m arranging a lease option. What I plan to do is to purchase the property from the seller and help her to get to the equity in her home because she doesnt qualify for a refinance. She has 9k in debt and she needs 15k for financial reasons. I plan to lease option the deal selling the home back to her at Market value in 2 years.
Here’s are the numbers.
The Balance is 118k
The value and sales price is 300k
Closing cost are estimated at 8k
My question is how can I construct this deal? I have a lease option contract ready for her to sign and she’s more then will because I am paying off all of her debt, giving her cash, she’s keeping her home and I am lowering her monthly payment. Do I need a separate addendum to get paid out at closing or do I get some type of lien attaching my $100k+ to the title. How do you arrange this through the title company?
I have 730 plus credit scores and in the contract the seller pays for all of the closing. I want to make sure that I am setting this up correctly.
Can so help me to set up my contract to protect my investment?