I’m currently focused on preparing myself to begin my real estate investing career in lease options.
Today at work, someone mentioned his friend is looking for a creative solution to his housing situation.
Basically, he got a mortgage on a house for $700k. Now, the house is worth $500k. He tried to re-negotiate with the bank, but he can’t change his mortgage.
To my knowledge, he isn’t having trouble making payments, but he is paying more than what the house is currently worth.
Here is my question: Using a lease option or subject-to strategy, is there any way I can help this person out, so we both end up in a win/win situation? I know he’d like to still occupy the home.
yes. im simulating sandwich lease options or double wrap arounds using land trusts and i give sellers more than their full asking price with terms only if they’re willing to be creative
The only way this will work is if you apply the greater fool theory. That is, if you can find someone dumb enough to pay $200k+ more than the home is worth, than it MAY work. Even then there is no saying the person won’t bail and leave you hanging.
your price points will be tough since youre in the 500-700k range. this is what im struggling with in california which is why im focusing on 300k and below or million plus. anything in the middle will be tough to convert.
since theres a $200k difference, you definitely need to hold it for a long long time.