Ok so i have found a potentian deal. House for sale for 99k. worth 140k. owner will do land contract for 0 down no monthly payments if paid off in 6 months. Now, I have someone that will give me 5k down and 1600 per month to lease option it. my question is, can i sign the land contract with the seller today, sign the lease option with my tenant, collect my down payment and then in 6 months do a refi on the land contract? I have horrible credit, the worst. Or my other thought is in 6 months get the tenant to get a mortgage and thus i get paid the equity and the seller gets his 99k

am i thinking this up the right way? please help experts.


Yes you can. But you need to be clear on your exit plan. With the credit restrictions tightening in the sub prime mortgage market you will need to do something about your credit. Such as credit repair.

Instead of lease optioning it, couldn’t you sell the property with owner financing (keeping your buyers payments at $1,600/month) and then sell the note?

Assuming you sold the property for $140,000 ($5,000 down + $135,000 owner financing), an 11.77% interest rate amortized over 15 years would amount to $1,600 per month. I don’t know what kind of discounts note buyers require, but assuming it’s 10%, that would leave you with a profit of ($121,500 net from note buyer + $5,000 upfront - $99,000 = $27,500).