Long Term L/o Appreciation
Hi Everyone,
Need some advice:I have a lady want's to l/olong term Doesn't want to sell for 3/5yrs I want to make her an offer but I must project home value 3/5yrs
mown the www.line.Right now I'm going with 6% appriciation value p/yr.Any help on that number would
be greatly www.appreciated.Thanks and have a good day.
By the way I need advice ASAP By early Tues morning. :-?
DO NOT DO THAT.
You L/O the house at a discounted value now. If it is worth say 110,000 then you don't want to L/O it for 110,000 you want it at least for a discounted price of 95,000. You don't do appreciation with your seller...don't even go there. You can't make any money doing business that way...you cannot do that...you can't know what the price of that house is going to be in the future.
TRUST ME...YOU DO NOT WANT TO DO THAT.
Always buy at today's value (or less). You are taking all the risks from here on out, so you are entitled to the future equity as part of how you get paid.
[addsig]
Well there are enough - n't - in JoDa's reply and I would concur and try not to add any more. I would ask why does she want to L/O for so long? And after answering that to yourself ask what happens to prevent you from executing your option the day after you sign the agreement. Nothing except a high option price.
Find her reasons and then form your deal around that. If you can get in for below market rents, little option money, and at or below FMV you may still have something worth looking at.