HEY GUYS… I’M A NEWBIE TO RE INVESTING. QUESTION ,I HAVE A BUYER THAT NEEDS 2 MORE TRADE LINES BEFORE SHE CAN BANK QUALI. SHE HAS 7K FOR D/P ON LEASE PURCHASE, HOW CAN I POCKET SOME OF THAT D/P AND STILL MEET THE SELLERS MIN D/P :shocked
Why are you shouting? Turn off the caps lock. Use your inside voice to give us more details about the deal. You have not told us enough to help you.
Lol…Sorry quess it was the coffee and pepsi shake…lol…So anyway, I sent this perticular buyer to my lender about 2 mths ago. Loan was denied due to lack of tradelines. I suggested that buyer look at lease purchase while gathering more tradelines.She stated she has 7k to put down, I located a property with owner willing to accept 5k down with PITI of 1k. 25% taken from mtly pmt leaves her with 8k down payment at end 0f 12 mths. How do I structure deal without giving seller my buyer and all her d/p money. Thanks Dave
Are you trying to do a sandwich lease option? If so, then you lease option the property for 36 months from the seller with $5K option consideration, $1K monthly rent, 25% rent credit when your option is exercised. Try to set option price for today’s market value or less.
If you get the property under lease option, then you sub-lease to your buyer with a 24 month option to purchase. Collect $7K option consideration and $1K monthly rent, but don’t give a rent credit. Set the option price 8% to 10% higher than the option price you are getting from the seller.
In the meantime, your buyer can open a couple of tradelines with nationally branded credit card issuers. After two years, there should be sufficient credit history to qualify for a mortgage if there are no other credit dings to be fixed.
This is just one way to structure a profitable deal using the seller’s terms. I am sure the lease option pros will come up with better alternatives.
Thanks Dave… been in the hospital for about 10 days thats why the untimely response.Yes your answer hit the nail…So a sandwich lease is what I will be doing…Thanks a bunch budd