I was wondering if i could get a lil help on this crative investing idea of mine… What kind of property and seller could i get to agree to the terms of $700 or less option fee with $700 or less mothly rent with a 2yr lease option agreement with $100-$200 going towards purchase price??? like whats the highest value one can get to agree to those terms and what type of seller would agree to that??? Thanks For Your Input :beer Happy Investing
ok i totally can understand that im checking out a few properties that are FSBO all of them between 47k-89k i have 1,000 dollars to put down and i want a monthly no higher than what you said 700 im suppose to look at the first tommorrow 3bed 1.5bath ranch style for 59k lets see what happens the owner is moving outta state… :crossfingers
Good advice from Dennis…I alway teach my students to find ‘vacant’ properties or any with long distance numbers listed in the ad. Most of those will be motivated and you will find a deal to fit your requirements. Digging for gold!!! Love it!!!
Aright you guys i found a property in a very nice neighborhood going for $110,000 i asked the guy would he be willing to do a lease with option to purchase on a 2yr agreement with a sale price of $90,000 option fee(downpayment)-$1,000 and 600 a month with $150 of it going towards price and he said yes!!! shocked the heck outta me but i went for it… how good of a deal do you guys think this is???
It sounds like a great deal but a few things you should consider. Is this house worth it? Whats the sellers motivation? Protect yourself, ask for a memorandum of Option. Check out the sellers credibility, are they behind on the Mortgage, last thing you want is to have a foreclosure notice stuck on your window 6 months down the road. demand proof the mortgage is being paid or arrange to pay it yourself, same for taxes and insurance, consider hiring a 3rd party to service the payments and payouts. Note, some of this doesn’t apply if the home is free and clear.
My 2 cents anyway. Herbster