Planning the future when I get calls from my signs.
If it doesn’t need rehab, I can sub2 → owner finance, which would leave me with being a landlord.
But what if they don’t have a mortgage on it? Then, what can I do? You can’t “sub2” nothing.
You can do a double side lease option. Basically you with “Rent to Own” to someone and also rent to own from the owner. Some people call this lease option. Sub2 just means there is an existing mortgage. I dont like to do sub2 as the deed is typically transfered and there can be a due on sale. With a lease option there is no due on sale. Best of luck
So I am making money in the fact that the owners are desperate to sell and I could get a discount? Then, I would rent it at full FMV?
Either way, it doesn’t sound like my style. A few hundred bucks per month doesn’t excite me.
I will give you an example of a “rent to own” or “lease option” deal i did just north of Riverside County which is Southern CA. I bought a house that was almost a teardown for land value at about $2k. I rehabbed it which cost me about $8k, So Im into it for about $10k plus closing costs. Im selling it for $35k cash to an investor that likes cashflow. The lease option will be transferred to the new owner and is at a purchase price of $47,900. The monthly rent is $720. So this investor has a property he paid $35k for that gives him $720 a month or if they end up buying it he gets $47,900. So for me im in the same thought path as you… a couple hundred bucks doesn’t do anything for me. Buy it does for alot of other people…
I dont like to do sub2 as the deed is typically transfered and there can be a due on sale. With a lease option there is no due on sale. Best of luck
You should go read Garn St Germain Act…ther CAN BE a due on sale for a lease.
If your into cash flow and making your life easy then I suggest that you do Sub 2 deals. They are easy and fast to do. If you have a chance to buy a house Sub 2 that does not need work then I would be jumping on it. I own several properties and Sub 2 are my favorite. The bank does have to right to call the loan due but do you really think the want to chance calling the loan due and end up with the house back? They have to go through all the bull shit to get the house back and that is going to take months if not over a year. Then when they do foreclose on the house they chance having the copper stolen, squatters to deal with, kids breaking in to party, etc… If you continue to make to payments on time then the bank will be happy. You will be happy due to getting a house with no money down and the loan already in place.
Are you selling these owner financed?
We have 2 call center agents who are the most tenured employees in the company. They are also the sweetest old ladies you ever met. Unfortunately the program they are on is going away, and they dont have the skillset for any of the other programs.
Im not the HR person, but I really like these ladies and dont want them to go away. My boss has asked me to come up with a way to keep them on staff and find them something useful to do.
They cant type quickly and they are very chatty on calls and the one lady wont stop using the phrase Have a blessed day instead of just Have a nice day
I hope theres really no help you can provide, but I was helping that typing it out would help me think.
Thanks,
Marianne
Hmmm, let’s see, uh, two elderly ladies with no technical skills, that talk a lot, type slowly, and like to bless people…
I have no ideas for them, except volunteer as a suicide hotline counselor. I’m only half-joking.
Meanwhile, that is the worst, and most hilarious resume review ever.
:beer