When dealing with a property with little or no equity how do you determine how much you can give the seller if you buy Sub 2 or Lease Option when they are not behind on payments?
ussually your not going to give them much at all. If they ask you for a thousand dollars for moving money you can tell them ill give you five hundred if you leave all of your appliances or anything else you see you want. None else is going to give them money and you are in a position of power. You are the only one that is going to help them in any way so you don’t have to give them anything. those deals are great by the way. Good luck
you really need to get the property with no cash everytime. But remember that not everyone is motivated enough to just give you the house, sometimes you just have to crunch the numbers and see if the deal will work for you. If not, then walk, read all you can and learn and soon you’ll be able to figure out if the deal is good or not depending on the numbers. Do you have a property that you are working with right now? If so post the numbers and somebody will help you with it.
on a l/o most of the time you’ll have to give some money down but always negotiate it to the least possible. That way when you find your t/b you can make some money up front.
Thanks for all the advice.
I hear people talk about crunch the numbers. What does this mean. give an example.
In my neck of the woods everybody thinks their house is worth much more than it really is. And many would rather let the lender take the house than “let someone else make money off of me.” Some do just want to get out from under and start fresh. I try to give the homeowner just enough to move into another place which around here is security+ first months rent. Of course you should try to sell them on the fact that you are helping them out of a bad situation and the home is worth next to nothing.