I’ve read some post and I’m little confused on how to move forward with a lease option. I understand the basic idea of the lease option but I don’t have enough time to purchase a course and implement (seller may walk), I’m hoping to get some guidance from this forum.
A homeowner has a property that is worth 130k, they owe $125k and PITA is $1200 monthly. They are willing to hold the note. I have already run an ad on craigslist (rent to own) and have gotten several responses in less then 24 hours.
My thought was to get a lease option of $7500 and do a lease for 3 years with the purchase price of $145k and monthly payments of $1700.
How should I approach this? Should I do a sandwich lease or get involved with a coop agreement?
If I do a sandwich lease, how do I get paid the remaining $7500. Same question if I do a coop agreement, how do I get paid? What is the best and safest way to position myself.
Should I put the property in a trust to protect it against any liens, etc?
I have no agent license, just an investor who does short sales.
Thanks
personally id do a sandwich lease and participate in an equity share of any principal reduction/future appreciation. keep the lease under 3 years and then let it automatically convert to a day to day holder over until they can refinance or resell the property.
let me know if you need help and i can inform you on how i structure lease to owns.
I suggest you slow down because by your own admission you aren’t quite sure about what you’re doing. Better to let a good deal pass, than to rush into a bad deal for the sake of getting it done. Become a bit better educated and avoid regrets later on.