MY FIRST POSSIBLE DEAL!!! HELP!

General Real Estate Investing
1

Hello everybody

First I am a big fan of this forum and you guys are the reason why I am so motivated and don’t give up when ppl say NO.
I am a newbie. Been in the learning process for some time now and FINALLY I took action. :biggrin However it seems that
after all that reading and learning I should know some but I am so excited that cannot even answer simple questions to myself. :banghead. So maybe you guys can help me out and put me on the right track.

I have a motivated seller that wants to sell her house with LO. And I want to do Cooperative Assignment.

This is what I’ve got so far: The purchase price is 132K. 2 bedr.2 bath. (The price sounds fear for the area however I dont have an address yet and haven’t been to the house yet so will have to determine that monday).
She wants $1100 a month to cover mortgage.
She is asking me if the T/B would be handing rent over to her or would T/B pay the mortgage company? (I know it is a simple question but because this is my first deal I am not sure. HOW DO YOU GUYS DO THAT?)

Also she said that she is already been pre-approved for her new house (her husbands grandparents old house) but she needs some equity from the house to use it as a down payment.

“”" If the deposit it large enough, and assuming that they are forfeiting it should they change their mind, I suppose it could be used as an advance on the equity we’d get from the sale?“”“” WHAT DOES THAT MEAN?

I should mention that she used to work for ‘’‘’‘’‘’ Properties so she dealed with multifamily leasing, but single dwelling is new to her.

I will be meeting up with her at the house on Monday to discuss details. Let’s say we agree on the terms, should I sign a contract with her right away? And what contracts do I need? Lease Purchase and Cooperative Assignment? Where can I find them?

Sorry for long post and a lot of questions. I hope you guys can help me out.

Thanks a lot a lot.

2

If she HAS to have equity out for her DP on the other house it could be tough, depends on what the people have to put down.
Does she know what she needs for her DP on the other house?
You’ll want to set the numbers with her ahead of time, in regards to OptionPrice, Option Fee, rent, rent credits etc.
The rent is paid directly to her, and I like to see it done electronically, so no mailing of the payments.
Get the docs signed when you meet with her, then get after the marketing!
As far as docs, you’ll need the lease and separate option to purchase, and the assignment of agreement.
I have other docs I include, but I don’t want to murk the waters here.
As far as where to get them…depending on the state, you’l need docs specific to your state.
Outside of that, if I had to recommend where, I’d suggest paying $97 for the manual at naked investor since it includes docs.