I negotiated a lease option on a townhouse for $163,000 with $1700 down a mo. pmt. of $1175 with $125 towards down on an 18 month contract(3 months in). The appraised value is $175,000. I am looking to relocate, but don’t want to pass up an opportunity to make money on this deal. My credit is horrible, I have thought of sub-leasing, or trying to sell the home through a FSBO lister. Any suggestions or ideas?
If I understand what your saying… you are living in a lease/option property but you think you can’t refi to buy it because of your credit. Hmmm, if a lender looked at your credit what would they not like?
Yeah… as long as it’s not excluded in your contract you should be able to sublease. It’s really simple… just advertise for “owner-financing” “no bank qualifying” or something like that. Send them to the house… maybe put a lock box on it. Help them get a loan from a secondary sub-prime lender and take back a small second if you can for maybe 5 or 10% of purchase price. But if they really can’t get a loan yet… just put them in the house as a l/o tenant with a minimun of 3% down.
Remember… your going to raise the price 10% anyways so it really doesn’t matter if you take back a small second.
I can walk you through it if you want.