I met “Don” at a rummage sale who has his deceased brother’s house for sale. It’s been on the market a year listed with the realtor. Worth around $70k. Mortgage is $42k and in dead brother’s name. 2 or 3 bed, 1 bath, but has a 2nd floor with 2 bed, 1 bath, full kitchen and dining. 2nd floor is like a second home cuz the stairs are outside. It has a separate garage that needs new roof or needs to be torn down. He is flexible and will roll with the subject 2 lease option to me since it’s not in his name anyway. Question: will an unusual house like this sell quick? Each unit is too small, but if the teenagers lived upstairs… It’s not the 3 bed 2 bath I was looking for. Might be better…or worse. I don’t know how successful you guys have been with these types of houses.
Also, I called the realtor and played dumb: “So, uhh, since like, Don found the buyer himself, you only need 3% commission from him, not 6%, right, is that how it works?” She agreed. But I won’t even be “buying” the house, I’ll get the deed, make the payments and put a buyer in. So, since the house is listed at $50k, 3% is $1500. If Don or I can pay her $1500 and she accepts, which I think she would, wouldn’t she release him from the contract to pay her and Don would be free to do the lease option with me?
Strategy I’m thinking: Ask for him (and his brothers) to pay 90 (or 60) days on the loan. I’ll try to get them to pay all closing costs too, and ask for the deed for nothing. Then I’ll tell him I’ll help out with the realtor’s commission. He’ll likely want 2-4 grand, but, if I get him go agree on the 90 days, and the closing costs, and the realtor’s commission, then I can give him like $2000 and take the deed (I wouldn’t take the deed right then, I’d get it under contract for a $500 dept for 60 or 90 days until I get the buyer and sign right before that expires, hopefully 2 months after I’ve had the buyer in the house paying me!)
Am I on the right course here? For the remarket I’d sell it on a lease op for, I don’t know, $80k if I could get it, with as large of down payment as I can get. Since it’s my first deal I wouldn’t feel comfortable with less than $3k. For a lease option I’m kind of confused if I make up the final price at first or only after they exercise the option. :help