Newby has potential to construct a LO purchase-time sensitive

My first. I have a motivated seller. SFH (3/2/2) appraised at $136K, she wants $147K. No $ down and she says she does not want to make any $ on the deal, just wants to move with her boyfriend and not take a loss, as her grandparents put down pmt of $35K as a “lien”. She says I pay PITI, whatever she pays. (Currently $911) She says she will refi in 6 mos to lower amounts.

What I would like:

  1. option to buy in 5 yrs or less
  2. 3 mos rent free (for minor upgrades she would not do…inexpensive)
  3. lock on the asking price (but unsure of what mkt rate will be)
  4. right to extend the option
  5. Lease out to another (when???)
  6. Have access to ensure PI is being paid
  7. right to sublease


  1. how can/will the dwn pmt (lien) effect me?
  2. State of TX, can I do a LO?
  3. How will her refi effect me?
  4. Provided the lender allows transfer, will I have problems getting insurance?
  5. Would minor upgrades ( such as fixtures and tile in bathroom) be sufficient? She asked for nothing, so should I not offer anything? I plan to do these anyway to increase my lease price?
    This is loaded with issues, and I have done a lot of research, but I need some pros to help me out. This is wide open for me to structure, and I need lots of help.

What would you do? :help

Hey Tygerlily,

Maybe you can clarify the down payment for me, is it a personal note? If so how is it structured, is she refinancing that note as well in 6 months?

You lost me with your first sentence: “I have a motivated seller. SFH (3/2/2) appraised at $136K, she wants $147K.”
She’s asking $11K over appraisal price and you say she’s motivated? I’m confused.

The reason I believe she is motivated is because she is not asking for the typical large consideration or security deposits. Is this still too outragous in lieu of those facts? Appreciate the input.

She stated they paid $35K as a graduation gift as a down payment on the house. She stated she found out through her realtor recently that this is a “lien”. I will get more specifics about this when she returns to the US on Monday.

I don’t live in Texas but I have heard numerous time from Texas investors that you are extremely limited in doing lease options in Texas. You might not be able to do what you have in mind. Probably better to confirm what you can and can’t do first first before moving forward as to not waste your time or get in trouble. Maybe some of the fellow Texas investors can provide feedback in the forum.



I agree with you and I will consult a RE attorney re: the legal side of things. I kind of hoped for more responses on this thread, but I suppose my scenerio was too lengthy.