I found a seller who is out of state from the subject property and is willing to do a lease option and said no $ down would not break the deal. I would get a T/B into the home and not sure how it would work with her no $ down deal? I of course wiould require $ down from my t/b. I would then be able to pocket the option $, thats a question? How would i draw up the option deal with the seller and with no $ down required? Do i have to have option consideration? If so what would the minnimum be?
Good stuff Guy’s.
Heres the scenario. SFH asking $199k willing to do a lease option does not need $ down to close the deal. Now my thought are to negotiate a lower price get a t/b then let the deal end with the seller and t/b. Now am i better off staying in the deal as me being the buyer and then leasing out? Not sure which is better for me. Does it make a difference?
Yes it makes a difference. If you by for 199K what do you think its worth. If its not worth much more than that do a co-op assignment. Up to now you’ve described a Sandwich Lease Option. The co-op carries next to no risk, the sandwich is risky. You deside. Herbster
Im figuring the place is worth about $175 to $180k
Now as far as the co op is concerned how would it be wrote up? And not quite sure how it works. Can you help me get the gist of the co-op?
Of course the owner is willing to do a nothing down deal. . .he’s raping you on the purchase price! Your comps reveal a value of $175K, but he’s asking $199K? Where’s the deal?
I’ll take that deal at $199k even if the value is $175k. Why? It’s a free property for me to control and move in a tenant/buyer with 5%-10% cash. Just extend the term to 5-10 years and wait it out. Geez. If you wont do it, pass it to me and I’ll give them their full asking price offer of $199k and I’ll sandwich myself into the deal.
WOW,
Im of the same mind as defcon. Sandwich myself into the deal and wait it out. But i do need to know about the co-op scenario. Can you help me understand this part?
I want to get this deal into a contract and start to find my t/b asap, what is my next move?
The seller told me to keep contact with her as of yesterday.
Co-op assignments have been covered here extensively just a week or two ago. Just look and read on and use the search feature also. Or take the place on a pure option and sell it to defcon, or do the long term as he suggests. herbster
So iv decided to do the co op scenario. Now im needing more details on the offer itself. Not sure how to go about it specifically. The terms etc. My biggest fear has always been is that im to make an offer. Looking for help on how to structure this deal. Seller is motivated.
Like Herbster Said, search the term on here and other places. For a beginner, this is almost the perfect strategy. All you need to do is find a tenant and collect the option fee.
Even if it is a free property, why not try to negotiate
it even lower? You want to have a good back end
profit and not risk having a negative when it comes
time for the tenant/buyer to refinance, unless of course
your game plan is to keep churning out tenant/buyer
after tenant/buyer, which isn’t a successful model.
(by the way, I’m not implying that this is your game plan
at all)
You never know, you might get the right tenant/buyer
and within just a few months they call you letting you
know they are ready to refinance within 45 days. It’s
happend to me. What would you do in that scenario?