I need some immediate help!
I have a property under contract for a lease purchase for 36 months, but I have until dec. 30 to the bring the loan current. What options do I have. The sellers are willing to give this house up and do whatever it takes. Should I talk to the mortgage company in their behalf and try to see if I can push this date back until I find a Tenant/Buyer? Please give me some info soon because this is my first deal.
Thanks!
Cruz
How much is owed on the property? If there is no equity why even bother? If there is equity do you have the money to cure the default? Will your new tenant/buyer have enough to cure te default? Ask around and see how houses like yours are selling or leasing. December sucks for finding tenants and selling houses. Christmas and cold and other reasons make it slow. You may want to hibernate till first thaw. I hope you can overcome all the negative points and do well with it. It is going to take something creative. Good luck
Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
Why in the world are you lease purchasing a property that the sellers want to get rid of.
Get the deed to that thing if it is a deal worth having. If it has no equity, you don’t want it either way.
I am going to get it under contract and assign it to some local investors. The reason I had a Lease Purchase deal on this property is because that’s all I know about. I do about the Pure Option which I can assign pretty quick because there is about 10,000 dollars in equity. Of course they (the investors) will have to bring the loan current ($2700) which shouldn’t be problem.
Cruz
Don’t mean to bust your bubble, Cruz, but 10k ain’t equity on ANY priced home.
This deal isn’t a deal. Better get out of it while you can. No investor is going to take that flip.
Keep Looking!
The numbers actually are as follows: 3br, 1bath, 1garage, $40,000 is owed on the house, it is appraised at $55,000, and it will take $2,700 to bring it current. The rent market in this area for this house$375 on the low side and $575 on the high side, no work to be done on it accept some carpet cleaning. They just want out, so they will sell for what is owed or just let someone take it over. I am new and I highly respect the opinions on these forums, so if there really isn’t a deal here please let me know because I meet with this homeowner tomorrow.
Thanks!
Cruz
Cruz,
375 to 575 is a wide swing for market rents. When I have numbers like this, I always take the low ones as my guide “just in case”. Worst case scenarios seem to follow me like my shadow so I plan for them. Using the 375 as a probable rent number, unless the pmt on the house is 175 per mnth or less, no go.
The 10k in equity, too thin, especially for a first deal.
My advice? Pass.
It would be a deal for a long term hold if the rent was at the $575 range and the payment about $250 to $300. I do not think it is a deal either.
Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
Thanks guys for the advice! I guess I am just hard up for a deal since I haven’t done my first deal yet and Christmas is getting expensive. Something, anything would be nice, but I would hate to get into trouble instead.
Thanks guys!
Cruz,
Always remember this…
No deal is much, much better than a bad deal.
Have a great Thanksgiving!
Cruz
Don’t forget “you make your money when you buy”
If there is no money to make in that deal don’t buy it, another one will come along.
I passed the deal to another investor who had some cash to work with and he help her out.
I will keep your advice in mind.
Cruz
Hi Cruz,
Just following up to see if you’ve had other opportunities come your way. I am just getting started myself and am trying to absorb what I can.
Happy Investing
& Happy Holidays!!
Dante
Cruz,
I know this is late, but DO NOT option from anyone in trouble. You will need to do a subject 2 and get the deed if you are brining someone current. In a lease option, you do not hold the title - the seller still does, therefore, you need a seller that won’t ‘screw it up’ during the option period. Work only with solid sellers.