Investor Offering To LO My Property For Me....good Deal?
I have my property listed for rental or lease option online. I received and email from and "investor that says he/she can do the following:
I would put someone in your property and they would pay you a monthly payment (piti + 5%). at end of 2 years they would refinance at
full asking price for home. I make my money off of a lease
option fee from client so would not be able to give you more than a
500-1000 down payment.
It seems like that is too low of a down to me. Unless the idea is for me to make money off of the Option if the buyer doesnt re-fi, or the home price in excess of whats owed?....im confused...
I am an investor thats owns several homes, most likely this is his approach.
would pay you a monthly payment (piti + 5%).
he will be making more than that, for example if the piti is $1000 I would try to get between 1150 and 1250 for the home on a lease option.
Is the two years refi a guarantee?
He will get more than $1000 down
Rob Carroll
you could tell them to sign a special cluase letting them know the 15k would be non-refundable if they breach the agreement, OR only let them put down $5070 and save the rest for when they are able to purchase the house at closing if they want to.
In general, option consideration is not refundable. You are granting them an option to buy for which you are charging them option consideration. You can, if you wish, allow some or all of the option consideration to go toward the purchase price or to the down payment. Make this contingent on them buying the property. If you are going to let their consideration go toward the down payment you will need to come up with that amount at the time they exercise their option. If they are smart they would have you open an escrow and deposit the down payment component in escrow.
Option agreements can be very creative and are basically whatever the parties agree upon.
Red flag....Mobile....be careful on both ends...financing is not easy ...banks & other lending institutions are strongly resisting financing these deals because the foreclosure rate is so much higher than stick built homes...investigate thoroughly before going further...regards, CWal
If you know your area...check Sunday classifieds for properties matching yours in the same areas...you will begin to see patterns of ranges...this works best for me...regards, CWal
if you have a properly executed and recorded option agreement there should be no issue.