If their credit is 580 or above you can get 100% financing. Sell it to them for your selling price,add in the closing cost, and then he gets in for 0 down and you sell it for a profit. Everybody wins and you move on to the next one.
It looks like your plan gives them their option consideration back if they exercise the option ($2500 option consideration, $2400 back if they exercise the option at the end of the two years). You are giving them the option of buying at market for consideration of $100 (if they purchase). Do you need to be so generous? Does $50 per month work? Afterall, they came to you.
Are you having trouble making your mortgage payment? Why not eliminate the middle man and take all the profit yourself? You can get a premium rent, little to no maintenance and repair costs, and sell at a premium price (plus get around 5 percent in nonrefundable option consideration).
[addsig]
Sounds like your "guy" may be proposing a cooperative assignment. He negotiates a lease option agreement with you, then negotiats his own lease option agreement with his own sub-tenant. The "guy" then assigns his new lease option agreement to you and keeps the option consideration he charged his sub-tenant as an assignment fee
If you accept, the "guy" is out of the middle of a sandwich lease option, allowing you to replace him as the seller in his contract with the new buyer.
Often this is a win-win, because the "guy" gets quick cash for his contract assignment, and you may get a slightly higher price for the property than you had previously negotiated with the "guy".
If their credit is 580 or above you can get 100% financing. Sell it to them for your selling price,add in the closing cost, and then he gets in for 0 down and you sell it for a profit. Everybody wins and you move on to the next one.
I am no LO expert, but they pay $850 now, why would you give them a $100 rent credit for paying the same amount?
It looks like your plan gives them their option consideration back if they exercise the option ($2500 option consideration, $2400 back if they exercise the option at the end of the two years). You are giving them the option of buying at market for consideration of $100 (if they purchase). Do you need to be so generous? Does $50 per month work? Afterall, they came to you.
Are you having trouble making your mortgage payment? Why not eliminate the middle man and take all the profit yourself? You can get a premium rent, little to no maintenance and repair costs, and sell at a premium price (plus get around 5 percent in nonrefundable option consideration).
[addsig]
Sounds like your "guy" may be proposing a cooperative assignment. He negotiates a lease option agreement with you, then negotiats his own lease option agreement with his own sub-tenant. The "guy" then assigns his new lease option agreement to you and keeps the option consideration he charged his sub-tenant as an assignment fee
If you accept, the "guy" is out of the middle of a sandwich lease option, allowing you to replace him as the seller in his contract with the new buyer.
Often this is a win-win, because the "guy" gets quick cash for his contract assignment, and you may get a slightly higher price for the property than you had previously negotiated with the "guy".