ReMax Agent Has Lease Option
the seller wants me to buy the property now but I still have 2 years left on the option. He wants to create a note and sale it for the cash I dont what i should do. The option is for three years at $65000 with payments of $700 a month with 50% of the rents creidted upon purchase price :-?
What is your hesitation? Do you like the house?
If the interest rate is good, it sounds like the owner is giving you a great deal. You don't have to go through the hassle of bank loan, etc.
Is he still selling at $65000, and is he giving you rent credit as if you had leased for the full period?
Is $65000 a fair price in that neighborhood?
thank you. I didn't think to ask for the full rent credits. The properties value is $83000. So if he creates a note it sould
be for $65000 - $12600 (350 x 36) =52400. IS THIS RIEGHT :-?
Sounds fair. If you can see if you can broker the note.
I am unclear. You have a lease option at $65,000. You have made 12 payments at 700 with 1/2 to be credited to purchase price ($4,200) this would leave a current option price of $61,800. I should point out that the effective "cost" of the $64,000 is about 6.5%
Now the seller is willing to create a note for you to purchase. At what rate and terms?
Then the seller is going to sell the note. In fact he is probably going to have to give some discount to the face value of the note to do that. Why not just get him to give you the discount off your purchase price and finance him out conventionally?
[ Edited by commercialking on Date 11/07/2004 ]