FSBO DEAL (Need help to make deal happen)

Owner needs cash , he says he has $70,000 in equity , I replied im open to do a lease option, he wants to do a lease option he agreed to idea, but he needs cash now to pay personal bills, $60,000 worth of bills.he wants $129,000 for 2 bed house, but is willing to negotiate price even lower,hes very desperate and motivated, and Im first to mention to him about doing a lease option, he asked me if I assign contract there will be a 30 day contract where I can opt out, and he asked if I can refinance house soon after I assign contract and pay him $60,000. Any help out there, what should I do…

I’d personally find a deal where you don’t have to put so much down. Or put a 90-day opt out clause in there so that you have time to re-market the property. If you do something like that and DON’T sell, just to be fair, I’d be sure to let him keep a deposit of I’m sorry money.

I don’t see the deal here, unless your ok with paying basically retail.

Your next step is to get the details on the debt he says he has. I have gotten debt reduced and taken it over in the deal at the amount due. Example the seller had a $40k hospital bill, I optioned the right to by the debt from the hospital for $12k, same as discounting a junior lien in principle. So I took subject to a first and second trust deed and assuming the hospital debt. An extra 28k to me and no more hospital bill for the seller.

So get the details on what he owes. That may be the road to a decent deal.

There are a lot of holes and unknowns here. He’s motivated but how motivated? Does he want cashflow or lump sum? If lump sum, with that amount of equity, I would think you could get a bank to finance out that but they’d have to take over the 1st too. How much is that? If he can stand cash flow, get him to carry a 2nd for some portion of the $60k, take over the 1st and pay him out over time. That assumes you can get the cash flow from the house renting it out. Your best bet is to get more information from him on what he really needs and there may be a deal there. I’d be very careful though to make sure the deal cash flows. If not, walk away.

Owner will give me 30 days after assigning contract, and would like for me to refinance so I can pay him $60,000, after his $60,000 is payed, I walk with the house, and continue paying his remaining balance to bank, how can I get refinancing just by owning a house within 30 days.plus my credit score is in the 400’s…

I think I am missing something here. You are looking at a direct purchase with a $60k down payment and an assignment of the loan. Right?

First, how will you be able to “refinance” $60k out a house that you do not own? Your name would have to be on the title. You would need to qualify for the loan (um credit score of 400 makes this impossible). You would be financing all the equity out (if there is in fact any).

Honestly, this looks like a nightmare. If they guy wants cash, just sell the house straight out, pay off the bank loan and walk away with the equity. Ditch the lease option and wholesale the puppy.

How can that be done,