Potential Lease Option? (Long Post)

Here are the emails that have been exchanged between seller and myself. This lady was a hit off my craigslist ad. I don’t know if this is just a non deal due to the equity problem or if it’s something I can get creative with.

First email from her.

I am looking for houses in the Grand Rapids area. Downtown, East, West, South, North makes no difference. I am mainly interested in 3 bed/2 baths but I would consider others. I am not a Realtor. If you have a house that you want to sell please email me the following information.

Address: **** ***** Grand Rapids, Mi

Asking Price: 90,900

Value of House: 94,500 based on comparable market from multiple Real-estate Agents

When you would want to close: June 12th 2008-July 30th 2008

Reason For Selling: Can’t afford the mortgage payments anymore, and lender won’t lower the interest rate

Basic Idea of Repairs Needed: nothing, shows like new- beautifully taken care of

Basic Info of House: located in Grand Rapids, Mi within Forest Hills School district- West of East Paris, between Burton and 28th street. 3 Spacious bedrooms, 1 ½ bath, new carpet and fresh paint- contemporary upgrades with 1 (detached) garage. Breakfast nook & bar, living room with new electric fireplace, master bedroom connected to bath, slider & deck with wooded view off main living area, finished basement with daylight windows

Feel free to call me @ ********** for more details.


My response

Dear Andrea,
I was able to go through all of your information. The house sounds good and I would be very interested in coming to see it sometime perhaps next weekend if that works for you. My name is Jordan Laubaugh. Your situation sounds exactly like the type I normally deal with. Sadly in our market today mortgages are a huge problem. If you don’t mind my asking how much do you owe on the house. There are sometimes things we can do with the financing to make the deal work on both ends. If we are able to meet next saturday to see the house and maybe talk some specifics on a deal that would be great. Let me know if next saturday works for you and what time.

Also, is the house listed? Thanks so much for the information. And if saturday works for us both I will call you later in the week to confirm. Have a great day.


Her next response and where we currently are at in my decision making.

Dear Jordan,

Thanks for your response. Here’s the deal. I live in Fort Myers , FL and I’ve been talking with a realtor in the Grand Rapids area, which we plan to list the townhouse through, but not until the first week of June, since we currently have a tenant in the house, and I don’t feel comfortable listing the property until it’s ready to show. Not sure if I mentioned it before, so I want to be clear, this is a townhouse. My tenant is scheduled to move out the first week of June, which is the end of their lease. I’ll be in Grand Rapids that entire week; I want to go in and touch up the point, do a thorough cleaning etc. after my tenant has moved out. At that time, we were planning to list the property on the MLS through our agent, (which by the way, we haven’t officially contracted with yet). However, if we have a potential buyer (like yourself), I would love to show the property myself and see what we could work out. I owe approx 105K still on the house. If we could sell this property for around what we’re asking, we could close fairly quickly. Let me know if you’d be interested in meeting with me the first week of June, and I’d be happy to take you through the property and discuss our options.


I still plan on going to look at it saturday. My problem is they owe more than it’s worth. So I can’t really get a discounted price. They are also asking 15k less than what they owe. So I’d say pretty confidently I could probably get a purchase price of around 87,000 hopefully less but we’ll see.

Is this something I can lease purchase out and get some money and a potential cash flow deal out of. I plan on responding to her to get some info on monthly payments so I’d know what I’d have to deal with as far as that.

Any input everyone wants to chip in would be greatly appreciated. And if this is just a non-deal go ahead and throw that in.