My First Sub2 Lease Lead!!

General Real Estate Investing
1

I found an investor that is open to doing a sandwich lease option. He paid $55k and made several improvements to the property including windows, roof, electrical, flooring, bathrooms. He wants to sell it to me on a 24 month option for $80k. Preliminary comps come back at $79.9k. I am thinking of offering him

$70k
$500/mo. 20% credit
1k down- credit
sign performance mortgage
24 months

I would sell to TB

$80k
$700/mo. 15% credit
$3k down- credit
12 month lease

Any thoughts, ideas? Thanks

2

Congrats!

I wouldn’t offer a down payment to the seller unless he brings it up. See if you can get by with a token binder. Also you may as well sell it on a 24 month term as well. Why not lock the buyer in for the entire term you’re locked in to the underlying payments with the seller, see my point? Plus it gives them more time to qualify for a mortgage. Otherwise your offer & exit look good to me.