I was wondering if i could get a lil help on this crative investing idea of mine… :biggrin 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
I am not sure what you are asking. But I will take a stab at it anyway. With a 700 dollar rent payment and the 100 times rule that would make the house sell at 70,000 dollars.You would want to purchase and repair for 50000 or less to make a profit when the tenant/buyer exercises his option.The seller would probably be a preforclosure that you would ask for a short sale . Did this make sense to you and did this answer your question?
kind of i guess… so basically with a 700 dollar rent payment i could get a maxium of 70,000 in value on a house…thing is what im trying to do is lease option a house for me and my family…i have 700 in my pocket to make a deal work so basically im trying to negoiate a deal with a 700 option fee to move in and 700 or less in monthly payments for 2yrs with a 100-200 option credit towards agreed purchase price… with that info what should i go after is what im trying to say… thanks for your input everyone
Do yourself a huge favor! Find someone late on there payments put the property in a trust and assume there Mortgage payments. You get the tax write off and you get owership of the property. By doing this you also get the $8,000 tax write off if you have now owned a property in the past 3 years. AND you can do this with NO MONEY DOWN and NO PAYMENTS for up to 4 months on a forebarance.
Reasons for not doing a Lease Option Include.
If you still can’t qualify after two years they can kick you out.
You don’t get the tax write off.
You have to trust someone else to make the payment and never know if it is going to Foreclose!
ok summit!!! great input so how do i put the property in a trust??? and get the no money down and four months on a forebarance?? im with the idea just explain it to me in more detail im knida foggy on this :beer
What kind of seller would agree to your proposal? Easy. Any homeowner who is in need of debt relief. And there is no shortage of them these days.
Taking title does have its advantages, but it also has its downsides, too. For one, you are buying into a declining market. With property values going down, you may find yourself upside down in two years.
Also, should something go wrong and you are unable to make payments, a lease option allows you a much easier out than if you were the owner of record.
Finally, the likelihood of you finding a buyer willing to do a lease option is much greater than finding a homeowner willing to sell for nothing down and putting you on title.
A seller will agree to anything that makes sense to relieve him from his problem or burden of owning a house that he cannot get rid of in this market or any other market. Rather than having a creative idea, why not build a relationship with each seller whose home you are considering a L/P or ‘Sub 2’ deal, find out what the problem is, consider and offer a solution that is viable to all parties, then present that as your ‘creative’ idea. This will get you business rather than attempting to find a property that will fit one creative idea.
awesome replies guys!!! im going to check out one tommorrow for 59k 3bed 1.5bath owner moving outta state… i have a 1000 to put down dont want to but have it lol lokking to pay no more than 700 a month :crossfingers
Ok now I get it. You want to purchase a home to live in. That is different than buying or selling an investment property.
If I had to find a home to live in now i would look at all of the foreclosures
to see how inexpensive I could get a decent house in a decent neighborhood. I my area they are listed at about 35000. I buy them for 25000 and with a little fix up, paint, carpeting and such for 5000 max, I currently sell these rent to own for 75000 and 750 /mo.
In your area of Michigan they will be similar and you can cut out the middle man. You could also find a distressed homeowner as well as a bank because that’s what a bank is too. With the homeowner you will make the low offer subject to the bank accepting the transfer of the loan from them to you.
With a little more work on your part you could find a home that works for your family, then find a private individual that loans money on houses for first time homebuyers. They are not well advertised but their are usually a couple of them in every market. Some Realtor’s rely on them when they have a hard time finding financing through regular channels. It is not easy but if you work at it you canget a home for a very low price now.