I have a friend that is not behind in his payments but has moved out of state. he is desperate. i told him that i could possiblyhelp him out. here are the details
house 4/2
payments $1018
Value $150,000
Mortgage balance $145,000
nice home in new subdivision that is in a good location
there is not much equity in this deal, but thought i could either do a sandwhich lease option with him, or i also thought about doing a cooperative assignment and just take some of the option consideration fee and be out of the deal? any advice
Definitely go with a cooperative assignment, there’s just not enough meat on the bones of this one to stay in the middle. If you’re confident the value really is $150k then here’s what I’d do:
Or if the market is soft and you need to sweeten the deal to get a T/B then try this:
Same price and rent
Rent Credit: $300/month
Option Fee: $4,000
Term: 2 years
You should keep all of the option consideration for yourself, that’s the way cooperative assignments should be done. But if the seller just won’t go for it without some money in his pocket then you can split up to half (ouch!) with him.
personally if they were good friends, i would try to stay out of the deal. what happens if something comes up and your can’t pay them? or your tenant buyer doesn’t pay you.