First Time Poster!
Hi all.
My questoin is probably really easy to answer(i hope).
Anyways here goes...i understand that i acn move in on someone whos having difficulty paying their mortgage(motivated seller), and that i can find a tenant/buyer and receive a payment plus first and last AND charge more for the monthly than i could for rent.
Sign that contract up for a year or two, and he maintains it better than a renter would etc.
But my concern is how does the guy i bought the house from in the first place get his cash?! Thanks in advance...and thanks for looking![ Edited by dare2003 on Date 10/02/2003 ]
I believe you are referring to Lease purchase or subject to....am I right?
If so yes you can...
The guy you buy from gets the cash at close 2-3 years down the road[ Edited by DaveREI on Date 10/02/2003 ]
Yeah I believe its called Lease-purchase..however if hes so "motivated" to sell to me at a lower price due to a divorce or just cant afford the payments anymore for example...why would he sell it to me and get his money 2-3 years down the road? Im confused
This should be good
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The question is... What would YOU be willing to do if you were in danger of losing it ALL? As well as the onus of foreclosure staring you down. Money later is MUCH better than no money, later or otherwise.
So the seller will not receive the equity in his house at all right away...i see.
The benefit of doing this for him wouyld be not dealing with the house any longer and then receiving payment much later down the road.
Youd have to arrange for a place for him to stay? Cover all the closing costs?
dare2003,
In the hope of providing some insight into the seller's reasons for doing a Lease/Option, I will share with you a deal I (actually we, my wife and I) got today. Although your seller will differ from mine(she's only somewhat motivated), hopefully you will better understand the concept.
The home owner lives in a nice house, in a nice neighborhood, and is not behind on her payments. The end of last year she got engaged and moved in with her finance. So since November 2002, she's had a vacant house. That's almost a year of $755/month payments she's been paying for an empty house. Why did she leave it vacant that long? I'm not sure, but she did mention wanting to do some cleaning and fixing that she never got around to. Now it's to a point where she just wants her mortgage payment off of her back. She's trying to save for her wedding and the payment has become a nuisance.
Why wouldn't she just list with a realtor? The front yards on her street are littered with Realtor signs that have been ther for months and months. So she realizes listing with a Realtor won't give her relief from her payment. What's her alternative?
That's where the Lease/Option comes in. I can guarantee her payments will be covered. I will find a Tenant/Buyer that will live in the house. I will give the Tenant/Buyer some time to get their credit/down payment together. Thereby CREATING a qualified buyer, instead of just looking and hoping to find one.
Why is the home owner willing to wait to get her $11,000 in equity? Because it's more important to her to get relief from her monthly mortgage payment. And, she has no method available to her that will guarantee she'll get her equity now, and have her mortgage payments taken care of.
I hope this helps. Good luck!
Jamie
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