Canadian Newbie - Avoiding Double Closing
Hello everyone,
I'm a newbie from Nova Scotia, posting for the first time. I'm impressed with all the helpful people here. I look forward to a point in the future when I will have enough experience to contribute to future newbies.
I think I have a general understanding of lease options, but please correct me if I am off-base. My question is on how to deal with a sandwich lease at close.
For example - sfh - $150,000 value - I option it for 2 years for $143,000 from seller - and find tenant/buyer who will pay $153,000 in 2 years.
If I buy it from the seller there will be a deed transfer tax of 1.75% ($2,503) plus legal fees ($1,000?) only to sell it the same day to the tenant/buyer and incur more legal fees ($1,000?). Losing up to $4,500 for the pleasure of owning the property for a few minutes.
How can I get the $10,000 "spread" without these costs. I gather I can substitute the tenant/buyer for myself in dealing with the seller. The tenant/buyer will want the deal priced at $153,000 to get the maximum mortgage. How do I motivate the seller to sell to the tenant buyer for $153,000 if the seller will only get $143,000? What are the best steps for me to take to get paid?
Your guidance will be appreciated.
Congrats on trying to learn a REI method.
Don't know what advice you have been given, so don't know whether it was good or bad.
Don't know what you are asking or wanting answered, but if you'll specify, we'll see what we can do.
You're welcome in advance, and welcome to the board. Good luck in your investing career.
Roger
REI w/ lease options is what I'm interested in..Any help with that would be great!Thnx in advance again...
jester,
I happy that you're interested in lease/options. However, typing in "any help would be great" is NOT going to get you any help.
Exactly, specific, detailed, that's what you need to do if you want some real answers. So if you have specific question(s) related to lease options, then post them and we'll try to help. Otherwise, the best advice that I can give right now is to take a trip to your local library and check out some books on real estate investing and learn up.
Good luck,
Roger